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Investing.com - Bank of America has revised its forecast for the AUD/NZD currency pair, now projecting it will reach 1.15 by year-end and 1.20 by mid-2026, according to a research note published September 10.
The bank’s analysts had previously identified a potential faster economic turnaround in New Zealand as a main upside risk for the NZD, but recent economic data has "all but extinguished this risk in the near term," according to the report.
BofA economists have adjusted their outlook for the Reserve Bank of New Zealand’s monetary policy, now expecting the central bank to lower rates to 2.25% this year, down from their previous forecast of 2.5%.
The bank identified the upcoming announcement of the next RBNZ Governor as the next significant event for the New Zealand dollar, though analysts see "few catalysts for a turnaround in NZD without aggressive rate cuts."
The revised currency pair forecast reflects diminishing upside risks for the New Zealand dollar against its Australian counterpart, with BofA maintaining a bearish outlook on NZD through mid-2026.
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