The resilience of New Zealand’s economy this year was nothing short of impressive. The country survived a slowdown in its 2 most important trading partners – Australia and China. Infact 2013 has been a good year for the New Zealand dollar and for 2014 the outlook is even brighter. The value of the kiwi did not change much in U.S. dollar or British pound terms this past year but against the Australian dollar and Japanese Yen, the currency appreciated over 13%.

There are 3 central reasons why New Zealand Dollar is expected to appreciate against other major currencies in 2014:

1. Faster Growth
2. Rate Hike
3. Demand for Soft vs. Hard Commodities
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