Australian Dollar (AUD) to New Zealand Dollar (NZD) Exchange Rate Fluctuates on Chances of Fed Interest Rate Hike
The ‘Aussie’ has been generally middling over the course of the week, although it has also managed to achieve rallying status lately due to latest Reserve Bank of Australia (RBA) interest rate decision.
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The New Zealand Dollar has been influenced by the cost of milk, as well as expectations leading up to an imminent Reserve Bank of New Zealand (RBNZ) decision.
Both currencies have remained in the shadow of the US Dollar, which has been shifting along with expectations of a near-term interest rate hike.
Australian Economic News: Loans and Lending Figures Offer Contradiction, Leave AUD Rudderless
The ‘Aussie’ has trended in a tight range against its peers of late, with limited gains being made against its usual rivals.
The source of this uncertainty among Australian Dollar investors has been yesterday’s domestic data; while the home loans figure for April rose from -0.7% to 1.7%, the investment lending outcome for the same month conversely dropped from 0.8% to -5%.
Earlier on in the week, the RBA sent the ‘Aussie’ soaring after it left the interest rate unchanged once again.
Elsewhere, the US Dollar has continued to hold a deciding influence over global commodity currencies such as the Australian and New Zealand Dollars, with the odds of a Federal Reserve interest rate hike continuing to concern investors in more volatile currencies.
New Zealand Dollar Positive Overall on Milk Costs; Q1 Manufacturing Data Unimpressive
The NZD has made noticeable gains against most of its peers recently, with advances coming against the Australian Dollar (NZD/AUD) and the US Dollar (NZD/USD), among others.
These positive printings have mainly stemmed from the cost of class three milk per hundredweight, which remains relatively high, compared to previous poor value shifts.
Less supportively, the recent Q1 manufacturing activity result has worsened from -2.3% to -2.6%.
AUD, NZD Exchange Rate Forecast: RBNZ Interest Rate Decision and Gov Wheeler Speech Impending
With all of the high-impact Australian economic announcements of the week now over, it only remains for New Zealand to have further influence on the AUD/NZD pairing exchange rate before the close of the trading session tomorrow.
Both of the NZ-based contributions will be sourced from the RBNZ; in the first instance is the imminent RBNZ interest rate decision for June, which is largely expected to result in a rate freeze at 2.25%.
Following on from this will be a speech from RBNZ Governor Graeme Wheeler, who is likely to give his justifications for the prior rate decision, as well as outline how he sees the national economy performing in the future.
The only other data likely to influence the pairing in the short-term will come from the US, where Saturday’s announcement of the University of Michigan confidence score for June could match pessimistic forecasts and lower the chances of a Fed interest rate hike, which would in turn boost the appeal of both the ‘Aussie’ and the ‘Kiwi’.
Recent AUD, NZD Exchange Rates
The Australian Dollar to New Zealand Dollar (AUD/NZD) exchange rate has been trending in the region of 1.0660 and the New Zealand Dollar to Australian Dollar (NZD/AUD) exchange rate has been trending in the region of 0.9386 recently.