New Zealand Dollar Forecast

"Narrowing interest rate differentials reduce a key NZD tailwind" - ASB.

Relief for New Zealand Dollar sellers might be in prospect in the second half of 2023 according to Westpac which has released forecasts showing a recovery against the British Pound.

GBPNZD sees 2023 high close by, technical studies remain bullish, UK inflation and Bank of England pose two-way risk.

GBPNZD has unwound overbought conditions, but momentum remains positive on most timeframes. Watch NZ current account and GDP data this week, UK jobs and GDP data also pose key risks.

GBPNZD was overbought, consolidation likely, multi-week GBP upside still preferred.

GBP/NZD is trading back at the psychologically important 2.0 level at the start of a new week which could see the Kiwi currency resume some of its 2023 underperformance.

GBPNZD has recovered the psychologically significant 2.0 level ahead of the weekend but peaking Bank of England rate hike expectations and a slowing economic data pulse could mean fresh 2023 highs are out of reach in the near term.

GBP/NZD increasingly comfortable at 2.0, "ugly" technical picture for NZD, says ANZ's Croy.

New Zealand is "in a tough spot" as rising interest rates expose vulnerabilities in household finances that could leave the New Zealand Dollar weaker, according to new research.

The New Zealand Dollar has lagged behind many other major currencies thus far in the year but updated forecasts from Commonwealth Bank of Australia suggest the Kiwi could underperform further in the short-term while warning of divergence between AUD/NZD and EUR/NZD from here.

GBP/NZD rose above 2.0 in the opening half of the week and could be likely to remain buoyant above roughly 1.98 if the Kiwi remains an underperformer among major currencies in the days and weeks ahead.

The New Zealand Dollar is set to take the limelight midweek when the RBNZ is expected to raise interest rates by a further 25 basis points as it continues its fight against elevated domestic inflation levels.

New Zealand is witnessing one of the sharpest pullbacks in house prices in the developed world, and the currency won't be immune to the fallout says a leading Wall Street Bank.

2023 will still be a year of New Zealand Dollar appreciation as the currency's recent trend of decline will prove temporary says one of New Zealand's major lenders.

Recession looms for the New Zealand economy but the China-focussed and risk-sensitive New Zealand Dollar can still appreciate from current levels, according to economists at ANZ.

Look for NZD strength into mid-year ahead of a broader decline says ASB.

"In recent weeks we have noted we thought the NZD was a little richly priced and was due for some consolidation after a strong run" - BNZ.

GBP/NZD moves back into favoured range, downside risks fade after U.S. jobs surprise.

The Pound to New Zealand Dollar exchange rate has held within a narrow range thus far in the New Year and could be likely to test the boundaries on either side of this corridor over the coming days as Sterling and the Kiwi navigate a series domestic and international event risks.

The Pound to New Zealand Dollar exchange rate entered the new week on the front foot and may have scope to edge higher in the days ahead although a cluster of moving averages located around the 1.93 level could eventually frustrate Sterling's recovery.