NZD expected to ease, but some may struggle to pass on cost

The NZD has been trading between 0.6400 and 0.6900 recently, and businesses expect this to continue.

In contrast, we expect the NZD can drop further over the year ahead, and re-test recent lows.

The NZD’s drop over the past year is not expected to flow through to higher prices for a high proportion of firms.