Nzdusd Forecast Hsbc

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Nzdusd Forecast Hsbc

NZD/USD Will Be Near 0.65 In 2027

NZD/USD is trading bullishly, but HSBC's forecast reveals that more upside is expected. According to HSBC, the NZD/USD will be near 0.65 handle in early 2027.

This forecast from the HSBC makes sense as the NZD is regarded as the commodity-linked currency. So, whenever the prices of commodities rise, the NZD also strengthens against the other currencies.

HSBC Remains Bullish On NZD

Against this backdrop, it makes complete sense for the NZD to gain the upper hand against the US Dollar in the next few quarters.

The earlier HSBC forecast for the NZD/USD was already bullish, but this was revised higher to 0.65. This is a sign that HSBC is now more bearish on the US Dollar against the NZD.

The HSBC also added that the Reserve Bank of New Zealand (RBNZ) is already on a bullish path. This trend will continue even in the coming months.

The bank thinks that the RBNZ will introduce more rate hikes during the rest of 2026. So, the markets expect the RBNZ to hike rates in 2026, which could support NZD strength.

So in the coming months, the interest rate difference will become more clear, and it will support the NZD. Based on this, HSBC believes that the NZD is still undervalued even when it is trading at mult-year highs.

The bank added that the NZD is in a prime spot to secure more gains due to the further rate hikes and the yield structure. On the US side, the Fed will maintain a cautious approach and will not go with any new rate cuts.

As far as the Fed is concerned, the chances of a rate hike are very low as the labor market situation leaves very little room for the central bank.

Another positive thing for the NZD is that the debt/GDP ratio of New Zealand is very low. So, when the commodity prices rise, it will only further strengthen the NZD.

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