AUD to NZD Exchange Rate Strengthens on RBA Rate Decision
Having avoided introducing stimulus in order to counteract their flagging economy; the Reserve Bank of Australia has aided an ‘Aussie’ (AUD) uptrend despite a dovish speech from RBA Governor Glenn Stevens. A lack of influential data has seen the New Zealand Dollar slump against the majority of higher-yielding currencies.
If you're looking to make an international money transfer, we recommend TorFX.
The Australian Dollar to New Zealand Dollar exchange rate is currently trending in the region of 1.1233.
On Monday the Australian Dollar ticked a little higher against many of its peers after the AiG Performance of Construction Index increased from 55 to 59.1.
A slight fall in consumer confidence wasn’t enough to offset the ‘Aussie’ gains as the currency rebounded a little from the forced weakening caused by a massive currency sale.
Those invested in the New Zealand Dollar have watched the ‘Kiwi’ (NZD) decline steadily over the past month or so; a fall largely initiated by dwindling global dairy prices. The Reserve Bank of New Zealand’s decision to stop its interest rate hiking cycle has also taken a toll on the South Pacific currency.
Monday’s yearly House Prices dropped from 6.9% to 6.4%. Also the NZIER Business Opinion Survey showed a massive declination from 32 to 19.
The Australian Dollar to New Zealand Dollar exchange rate has hit a low today of 1.1182.
On Tuesday the Reserve Bank of Australia made their interest rate decision. They opted to hold the rate at 2.50% and, most importantly, avoided introducing stimulus.
‘In Australia, most data is consistent with moderate growth in the economy,’ said RBA Governor Glenn Stevens. ‘Resources sector investment spending is starting to decline significantly, while some other areas of private demand are seeing expansion, at varying rates […] Public spending is scheduled to be subdued. Overall, the Bank still expects growth to be a little below trend for the next several quarters’.
An absence of New Zealand economic data on Tuesday has seen the ‘Kiwi’ slump against the majority of its most traded currency rivals.
Forecast for the Australian Dollar to New Zealand Dollar Exchange Rate
With very little in terms of Australian domestic data on Wednesday the ‘Aussie’ is likely to experience volatility from foreign currency changes. The Chinese Composite and Services PMIs are likely to have an effect on both the ‘Aussie’ and the ‘Kiwi’.
Other than the Chinese data mentioned above, those invested in the New Zealand Dollar will await domestic Card Spending data due later on Wednesday.
Thursday will be a key day for those trading with the Australian Dollar. Australian Employment Change and Unemployment Rate figures have the potential to cause ‘Aussie’ volatility.
With a lack of influential, market moving data pertaining to New Zealand up ahead, the ‘Kiwi’ is likely to continue trending lower against higher-yielding currencies.