AUD/NZD To Hit Parity? HSBC Thinks It’s Possible

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.


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Mingze Wu

Mingze Wu

Currency Analyst at Market Pulse
Based in Singapore, Mingze Wu focuses on trading strategies and technical and fundamental analysis of major currency pairs. He has extensive trading experience across different asset classes and is well-versed in global market fundamentals. In addition to contributing articles to MarketPulseFX, Mingze centers on forex and macro-economic trends impacting the Asia Pacific region.
Mingze Wu