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Expect NZD/USD to average 65.9 cents by Q4 in 2018 – ASB Survey

ASB Bank, a bank owned by Commonwealth Bank, operating in New Zealand, came out with its latest currency survey, which Surveys businesses' expectations for the NZD/USD and business hedging plans.

Key Findings:

“A clear turnaround in NZD sentiment was evident.

Now expect the NZD/USD to average 65.9 cents by Q4 in 2018, which compares to a 12-month outlook of 75 US cents just three months ago.

Respondent groups have a similar outlook, irrespective of their trade focus or size of the operation.

There were differences by trade orientation, with the lower NZD reducing hedging intentions for exporters (52.4%), increasing intentions for importer/exporters (at 97%, the highest on record), with those for importers steady at around 90%.

For those enterprises that plan to hedge, the cover is equivalent to 93.7% of FX exposures, the highest on record”.

 

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