On Friday BNZ issued revised forecasts for NZD/USD, recognising a higher starting point for the US dollar.
The forecasts:
- end-Q3 target 0.72 (from 0.75 previous projection)
- end-Q4 target 0.75 (from 0.76)
Some snippets from the reasoning:
- mainly reflecting the stronger starting point for the USD
- end-Q3 forecast assumes Covid concerns fade before the end of the current quarter
- BNZ say their optimistic view remains that the spread of the virus is brought under control and there is no major outbreak in NZ
And:
- key theme that has driven our positive NZD outlook for more than a year now has been the global recovery story. However, that narrative has hit a bump in the road over the past couple of months as the more contagious delta variant of COVID19 has spread from India across the rest of the world.
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Weekly NZD/USD:
