Australian Dollar (AUD) Slides against the New Zealand Dollar (NZD) after Fed Comments Boost ‘Kiwi’
The Australian Dollar has been a stable option against its peers recently, although it has lost out against the stronger New Zealand Dollar overall.
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The ‘Kiwi’ has managed to sustain a favourable rate against peers on weakness in the US economy, as well as positive central bank sentiments.
Australian Economic News: NAB Reassures on ‘Brexit’ while US Dollar Drops
The ‘Aussie’ has been steady overall against the New Zealand Dollar of late, although with both currencies vying to be the high-risk asset of choice, the latter antipodean currency has been outperforming the former.
Domestic data for Australia has been thin on the ground of late, with the HIA new home sales stats for May coming out on Wednesday and showing only a marginal improvement.
In terms of the effects of the big issue – ‘Brexit’ – National Australia Bank (NAB) has attempted to calm Australian investors by issuing a report that forecasts a ‘minimal’ impact from the UK’s eventual exit from the EU.
In the report, NAB researchers said that:
‘The Brexit vote leads us to cut our UK growth forecasts, from around 2% to 1%, but as the UK is only 2.4% of the world economy, that is not enough on its own to impact global growth by much. Ongoing global financial market volatility or concern that other countries could exit the EU or Eurozone are needed to produce a significant dent in the 3% pace of global growth’.
New Zealand Dollar in High Demand as RBNZ Highlights Expansionary Risks
The appeal of the ‘Kiwi’ has been consistently high over the past two days, particularly since the US Dollar slumped on Federal Reserve statements.
In particular, Fed official Jerome Powell has laid the odds of a rate hike low, stating even before the economically-destabilising ‘Brexit’ vote, that the chances of a rate hike in the near-term were slim.
Domestic news out of New Zealand has consisted of a Reserve Bank of New Zealand (RBNZ) statement, which has gone along the lines of adopting a cautious tone, by stating that the national economy was growing, but that ‘the economy faces a number of headwinds’.
AUD, NZD Exchange Rate Forecast: Australian Credit Stats and New Zealand Confidence Data Imminent
The next economic announcement likely to influence the Australian Dollar will come shortly, in the form of the private sector credit stats for May.
On the month, a rise from 0.5% to 0.55% has been predicted, while on the year, no forecasts has currently been made.
From New Zealand Dollar, the near-term will bring both building permit data for May and the ANZ June business confidence result; in the latter case, an advance from 11.3 to 12.33 is on the cards.
Recent AUD, NZD Exchange Rates
The Australian Dollar to New Zealand Dollar (AUD/NZD) exchange rate has been trending in the region of 1.0447 and the New Zealand Dollar to Australian Dollar (NZD/AUD) exchange rate has been trending in the region of 0.9576 recently.