The kiwi dollar firmed up above 0.71800 against the US dollar on Thursday amid a surge in inflation and jump in bond yields, raising expectations of earlier rate hikes. New Zealand’s annual inflation rate jumped to 4.9% in the 3rd quarter from 3.3% in the previous quarter, exceeding all forecasts and pulling forward expectations of another 50 basis-point rate hike in November. The country’s benchmark 10-year yield also reached 2.453% on Thursday, the highest since January 2019. Meanwhile, New Zealand reported a record 102 cases on Thursday with 94 of them in Auckland, as the country’s biggest city reels from lockdown extension.
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 October of 2021.
The New Zealand Dollar is expected to trade at 0.70 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 0.69 in 12 months time.