Nzdusd Long Term Forecast

last updated on

Nzdusd Long Term Forecast

Nzd/Usd To Move Towards 0.61 By End Of 2025

According to ING, the NZD/USD pair is expected to end the year 2025 near the 0.61 handle. But for now, it seems that the pair is still stuck under the 0.60 resistance.

ING added that the catalyst for a move up in the NZD/USD will be the potential rate cuts from the US Federal Reserve. This will help New Zealand gain upside and end the year on a positive note.

Yield Difference Will Support Nzd

Recently, the Reserve Bank of New Zealand (RBNZ) has also lowered its policy rate. Looking ahead, ING believes that the interest rate in New Zealand by the end of the year will be 2.75%.

However, ING also made it clear that the RBNZ will end the rate-cutting cycle after that. So in a sense, the rate-cutting cycle will finish by the end of the year.

They also added that the US developments will make it tough for the NZD in the coming months. However, the NZD will still end the year on a positive note and gain upside against the USD by the end of the year.

As for the US Federal Reserve, ING is forecasting around a 75 bps rate cut by the year-end. So, this will push the yield difference in favor of the NZD and will also help the currency.

Another development that will happen is that the rate cuts in the US will also improve the risk appetite. As a result, the net capital will move into the commodity-linked currencies such as the NZD.

But if the trade conflict between the US and China intensifies, then the New Zealand Dollar will become vulnerable. But in the end, it will also affect the US Dollar as well and will likely make things very complicated.

This forecast from ING is in line with other investment banks, which are also eyeing a broader US Dollar weakness in the coming quarters.

Trending Stories