NZD/USD to remain range bound between 0.58-0.59 until year-end – ANZ

Economists at ANZ Bank analyze NZD/USD outlook.

AUD/NZD to be capped at 1.10 in 2023
We are cautious of the recent turn in economic data surprises in New Zealand. The economy still faces deeply negative real rates which will limit a large upside for the NZD/USD pair in the near term.

Globally, with the USD remaining supported till year-end and slower economic growth in China, there will be few global drivers for the NZD.

We think the NZD/USD will remain range bound between 0.58-0.59 until year-end.
We are bearish on NZD crosses and expect the AUD/NZD to be capped at 1.10 in 2023 and forecast the pair to appreciate to 1.14 by the end of 2024.