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FX BankForecast
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Morgan Stanley

2026 FX Outlook: The Year of Pivots

LIVE20 November 2025USD bearish
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NZD/USD

RBNZ deep cuts weigh on yield attractiveness but growth recovery supports. NZD t

Neutral to Slightly Bullish

MS Forecast Path

Cross-Firm Forecast Comparison

Key Drivers

RBNZ rate path
Growth recovery
Housing cycle
Immigration
Dairy prices

All Firm Targets (Dec '26)

INGBullish0.6200
DBModerately Bullish0.6200
MSNeutral to Slightly Bullish0.6100
GSModerately Bullish0.6000
MUFGNeutral to Slightly Bullish0.6000
BofANeutral0.6000
JPMNeutral0.5900
BARCNeutral0.5900

Analysis Summary

RBNZ deep cuts weigh on yield attractiveness but growth recovery supports. NZD to modestly outperform on improving domestic fundamentals. AUD/NZD to remain elevated given yield differential.