Tourism is a strong economic driving force for New Zealand, so when tourism is doing well in the country, the currency will tend to be stronger. Other economic factors, such as growth rate, GDP, unemployment, and inflation are strong and, therefore, lead to a strong currency.

Is the NZD getting stronger?

Banks expect the New Zealand Dollar (NZD USD) to slowly rise above 70 US cents in 2021. However, bank experts agree there are many risks that could impact the accuracy of this prediction next year.

Why is NZD strong against AUD?

The Aussie dollar is relatively stronger than the Kiwi, which makes the rate move higher. ... This is because the AUD/NZD is a currency pair. The Australian dollar is rising more than the New Zealand dollar. Weak New Zealand economy: The Reserve Bank of New Zealand (RBNZ) cut interest rates earlier this year.