As long as concerns about Chinese growth make headlines, Kiwi will be vulnerable, according to Rabobank economists.
“Whether or not China’s demand for dairy and meat products from New Zealand turns out to be elastic enough could be crucial for the earnings of many domestic companies this year and for the prospects for the NZD.”
“While the kiwi fruit recently saw government success in containing the virus, headwinds remain significant.”
“We see downside risks towards NZD / USD 0.57 on a view of 3 to 6 months. This implies an intensification of American-Chinese tensions in the run-up to the American presidential elections and an associated increase in the rate of Chinese growth. “