The New Zealand dollar is set to move past parity against the Australian dollar in 2014 for the first time in 40 years, economists at HSBC say.
Paul Bloxham, chief economist for Australia and New Zealand at HSBC, told CNBC’s Asia Squawk Box on Monday the New Zealand dollar – or kiwi as it is known – could surge over 8 percent against the Australian dollar this year, as its central bank aggressively hikes interest rates.
“We think it’s [the kiwi] going to appreciate and it could actually get past 86-87 cents [against the U.S. dollar], and perhaps even past Aussie dollar parity for the first time in 40 years,” said Bloxham.
On Monday the New Zealand dollar was trading at 0.9250 against the Australian dollar and 0.8367 against the greenback in early morning trade in Asia.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.