The New Zealand dollar was changing hands around $0.5963 on Thursday, attempting to strengthen after falling modestly in the prior session amid softening US dolar after weak economic data in the world's largest economy supported bets that the Fed may soon end its tightening policy. Meantime, fresh data showed New Zealand's business mood jumped to an over 2-year high in August, buoyed by a robust activity outlook and a further easing in cost pressure. In key trading partner China, today's official figures indicated a softest drop in the manufacturing sector during August while services activity grew for the 8th straight month. For the month, however, the local currency is heading for a drop of over 3.5%, which would be the steepest monthly fall since February, pressured by forecasts of a recession in New Zealand during Q3 and Q4 of 2023, worries that Australia's central bank may extend a pause in rate hikes next week, and a deepening downturn in the Chinese economy.
Historically, the New Zealand Dollar reached an all time high of 1.49 in October of 1973. New Zealand Dollar - data, forecasts, historical chart - was last updated on August of 2023.
The New Zealand Dollar is expected to trade at 0.58 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 0.54 in 12 months time.