2018 New Zealand Dollar Forecast

Forecasts for the New Zealand Dollar (NZD USD) usually changes from bank to bank and from month to month. This article takes a look at the general trend in NZD USD forecasts and how it might impact you.

Bank forecasts for the New Zealand Dollar in 2018

The New Zealand Dollar (NZD USD) started 2018 on a lower level of around 68 cents, but has now settled around 72 US cents after some volatility. Most bank analysts predict the NZD to decline slightly by the end of the year to around $0.6500-0.7000.

 

Updated in October 2018

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NZD Crosses Bank Forecasts

NZD GBP forecast for 2018

The NZD GBP cross rate is expected to remain flat from current levels of 0.5174 near term. Longer term outlooks suggest the NZD GBP cross rate could fall towards 0.4500 from relative weakness in the British Pound rather than a stronger NZD.

NZD AUD forecast for 2018

The NZD AUD exchange rate has been rising steadily since the beginning of the year. For 2018, the major banks are expecting the NZD AUD to rise higher, but are divided on targets for the end of the year. Some are predicting a smaller rise to 0.9174 and others much higher to 0.9882.

NZD EUR forecast for 2018

So far in 2018 the NZD EUR cross rate has been flat around 58 cents to the Euro dollar. However, major banks think the NZD EUR cross rate could move lower in 2018, towards 50 cents.

How does a weak NZ dollar affect me?

A weaker New Zealand dollar isn’t great for New Zealanders living in Australia and other places abroad. Those who have moved to overseas locations will see a decline in overall spending power if they are servicing their lifestyles with NZD payments. The the NZD could improve in 2018, but the outlook is uncertain and most bank analysts are expecting further weakness.

If you want to have some certainty for your money transfers even when the New Zealand dollar is expected to remain weak, you can check out our currency calculator for the best rates from different money transfer providers.

With the NZD falling, New Zealanders can expect an increase in tourists, probably from Australia, being the immediate neighbour. While holidays for foreigners going to New Zealand will be cheaper, it won’t be a great time for New Zealanders to travel overseas next year.

Saying that, if you do want to do some travel you should book for the first half of the year where you might be getting a better exchange rate than in the latter half of the year.

What are 3 key influences on the New Zealand Dollar?

1. New Zealand Economy

The New Zealand economy is growing as evidenced by greater exports than imports and low unemployment, but there are worries around the country’s housing sector. As a result, the NZD is falling.

 

2. New Zealand Politics

The political scene in New Zealand has generated uncertainty, with a new Labour government voted in place in September. Greater uncertainty from politics means investors will sell the NZD, because there is a greater chance of it getting weaker. This is particularly if government policies are deemed as unhelpful for economic growth.

 

3. Other Currencies

The US dollar (USD) has a significant influence on the New Zealand Dollar. Generally, when the USD gets stronger, the NZD is relatively weaker and vice versa.

General advice: The information on this site is of a general nature only. It does not take your specific needs or circumstances into consideration. You should look at your own personal situation and requirements before making any financial decisions.

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General advice: The information on this site is of a general nature only. It does not take your specific needs or circumstances into consideration. You should look at your own personal situation and requirements before making any financial decisions.