ASB with its forecast for the New Zealand dollar next year.
In brief:
We have also revised up our NZD view
- OCR cuts are now looking less likely.
- The vaccine news has considerably brightened global prospects, raising the likelihood of a ‘V’-shaped recovery
- USD index ... scope for further weakness over 2021 given the climbing US Federal Budget deficit and the widening US current account deficit.
NZD... to remain slightly above our 0.64-0.68 USD fair value range over the next year or so.
- NZD to remain within a 90 to 95 Australian cent range zone.
- NZD is expected to continue to strengthen against the yen, ending 2012 at around 80 JPY
