NZD / USD up 16 pips to 0.6637 today
Bank of America Global Research discusses NZD / USD outlook and Targets the pair at 0.64 at the end of the third quarter and 0.62 at the end of the year.
“The NZD will likely be held hostage by external factors, in particular the coronavirus situation and the global recession. China remains New Zealand‘S main trading partner and the premier impact on tourism and, to a lesser extent, on educational services, is evident. The demand for unsustainable commodities would also be affected, although to a lesser extent than that for investment-driven commodities. And assets with higher overall risk would generally support NZD, ”notes BofA.
“We continue to expect the NZD / USD to end the year at 0.62 as the RBNZ remains among the more accommodating central banks in the G10, along with our stronger USD outlook.. We only expect a significant recovery in 2021, driven by the delayed impact of the Chinese recovery and once the coronavirus uncertainty dissipates, ”BofA adds.