We believe investors have an opportunity, a small time window to take advantage of the high exchange rates and predicted drop in the exchange rate over the next 12 months. US Dollar NZ Dollar outlook UK Pound to NZ Dollar outlook Australian Dollar to NZ Dollar outlook Investment OpportunityUS Dollar NZ Dollar Outlook We believe investors have an opportunity to take advantage of the high exchange rates and predicted drop in the exchange rate over the next 12 months. The New Zealand dollar peaked at a 22 year high against the US dollar (Feb 22, 2005). Since then the NZD/USD exchange rate has dropped slowly but expect another 15-19% within the next 12 months. Westpac Banking report in their economic and financial forecasts (March 2006) are predicting: NZ dollar to US dollar is expected to drop from its current $0.67 (at March 06) to $0.63 by June 06, $0.59 by September 06 and to $0.65 by December 06 leveling off around $0.54-0.53 by March 07-June 07 in line with the Reserve Bank estimate of the long term outlook for the currency.
This is a predicted 19% decrease over the next 12 months!! What does this mean? With the pick up expected in international markets this year and the currency movement you should be investing in international equities. UK Pound to NZ Dollar outlook NZ dollar to UK pound is expected to drop from its current £0.38 (at March 06) to £0.36 by June 06, £0.34 by September 06 and to £0.32 by December 06 leveling off around £0.30 by March 07-June 07 in line with the Reserve Bank estimate of the long term outlook for the currency.
What does this mean? This is about a 21% drop in the exchange rate over the next 12 months. Australian Dollar to NZ Dollar outlook NZ dollar to Australian dollar is expected to drop from its current $0.91 (at March 06) to $0.90 by June 06, $0.87 by September 06 and to $0.85 by December 06 leveling off around $0.83-0.84 by March 07-June 07 in line with the Reserve Bank estimate of the long term outlook for the currency.
What does this mean? This is about a 9% drop in the exchange rate over the next 12 months. Talk with a Creating Wealth Adviser Refer to exchange rate calculator |