2021 New Zealand Dollar Forecasts & Predictions
New Zealand dollar exchange rates and forecasts change all the time. This article looks at bank predictions and is updated regularly.
2021 New Zealand Dollar forecasts upgraded
Since March 2020, the 'Kiwi' (New Zealand Dollar) has consistently moved higher towards 75 cents against the US dollar. Recently, the NZD hit a 35 month high of 0.7462 before easing a touch.
Many economists are predicting the New Zealand dollar (NZD) to reach and move higher than 75 US cents by the end of this year.
NZD to USD chart
What do bank experts predict will happen to the NZD?
If you agree with the top banks in Australia and New Zealand, commodity currencies including the Australian Dollar or New Zealand Dollar will rise in 2021.
ANZ, CBA, NAB and Westpac expect the New Zealand Dollar to average about 75 cents against the US Dollar in 2021, about 5 cents higher than in 2020.
2021 New Zealand Dollar forecasts upgraded
Two of Australia's big banks have upgraded their forecast as the NZD/USD exchange rate hit a fresh 2 and a half year high above 74 cents.
Both the National Australia Bank (NAB) and Westpac now expect the New Zealand dollar to move up to 76 cents by the end of 2021.
Meanwhile, Australia and New Zealand (ANZ) bank are predicting a slightly higher rate of 77 cents by the end of the year.
- Rising Chinese demand for New Zealand commodities, especially agricultural commodities
- A stronger than expected recovery in the New Zealand economy
- A relatively weaker US dollar
Why is the New Zealand dollar is rising?
There are many reasons why the Kiwi dollar has been getting stronger.
These are the most likely:
- Vaccine rollout reduces coronavirus globally despite new strains
- New Zealand's economy bounces back
- RBNZ continues to stimulate the economy through low interest rates
- A weaker US dollar as the US economy struggles
- China’s demand for New Zealand commodities grow
- Economic growth on a global scale recovers
This doesn't mean the NZD won't decline. The Reserve Bank of New Zealand (RBNZ) could signal the currency is a risk to the country's growth potential if it continues to appreciate against the USD and manage it accordingly.
2021 Bank forecast major crosses
More currency forecast news
There are many different influences over the local currency, increasing commodity prices appear to be the key driver of the recent rise of the Australian dollar. Prices of commodities like oil, wheat and nickel have soared recently on the back of the war in Europe. This has increased the demand for ‘commodity’ currencies like the Aussie dollar, helping it move higher against most major currencies including the US dollar, Euro and British pound. According to the Reserve Bank Australia There has been a close relationship between the terms of trade and the value of the Australian dollar over […]
The AUD to USD exchange rate rose above 75 cents for only the second time since the end of July. At 12:50pm, the CPI or inflation data was released. It showed that prices in Australia are rising faster than previously forecasted. Here are some of the key points: Consumer prices rose 0.8 per cent during the September quarter (July, August and September). Prices are 3% higher than a year earlier. The increase was largely because of fuel which increased 7.1% and rising house prices which increased 3.3%. Interest rates are one of the big drivers of Australian dollar. Right […]
In the past 12 months, the Australian dollar has been sent lower against US dollar, New Zealand dollar and the British pound. The exchange rate is also slightly down against the Japanese yen and Euro. It’s largely because of two large influences over the Australia dollar – interest rates and commodity prices. The strength or weakness of the Australian dollar exchange rate is also impacted by the value of the other currency. For example, if the US dollar gets stronger in its own right, then all other things being equal, the Australian dollar will weaken and the AUD to […]
If you are travelling overseas this year from Australia, the best time to buy US dollars with Australian dollars was in late February 2021. This is because the AUD/USD peaked at 0.7997 and has fallen gradually since. The same applies to anyone transferring money overseas in US dollars. More recently, the AUD/USD exchange rate rose above 75 cents for the first time since late October 2021, making it the best time to buy US dollars so far this year. In general, if you are buying US dollars with Australian dollars, you want the AUD/USD exchange rate to be as […]
This article looks at what the banks are predicting for the AUD to USD exchange rate over the long term in 2022.
This article looks at what the banks are predicting for the Australian dollar (AUD) over the long term in 2022.