Australian Dollar News: AUD NZD Exchange Rate Rises after Dovish RBNZ Outlook
The Australian Dollar has risen sharply against the New Zealand Dollar today, but mainly due to the latter currency’s weakness rather than any particular domestic strength.
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Australian Dollar Ticks up despite Pressure from US Dollar
The recent Australian Dollar to New Zealand Dollar rise has been something of an exception, with the AUD otherwise declining against its currency peers.
This overall AUD weakness has been caused by a resurgent US Dollar, which has bounced back after being damaged by fears about a US-North Korean war.
Despite this, at a rate of 1.0846 the Australian Dollar has been trading at an over-3 month high against the New Zealand Dollar.
New Zealand Dollar Tumbles after RBNZ Muse Interest Rate Cut
The latest New Zealand Dollar movement has been decidedly negative, with the NZD AUD exchange rate falling to the lowest level since early May.
This slump has been triggered by the latest Reserve Bank of New Zealand (RBNZ) interest rate decision.
RBNZ officials left interest rates at 1.75% as forecast, but damaged the NZD by suggesting a possible interest rate cut to reduce its current strength.
Weekly AUD NZD Forecast: Turbulence ahead on RBA Minutes and AU Jobs Stats
Australian Dollar traders are primed for two major data releases in the coming week, starting off with Tuesday’s Reserve Bank of Australia (RBA) minutes for August.
The RBA left interest rates at 1.50% earlier this month, with officials highlighting the strong Australian Dollar as a problem. Because the Australian Dollar is valued so highly at present, this can lead to lower foreign investment in the country, as well as reduced tourist activity.
If the upcoming minutes reiterate the problem of AUD strength, then the Australian Dollar could decline against the New Zealand Dollar.
The other major Australian news will be Thursday’s jobs figures for July. On the month, full-time employment is forecast to drop by -25k persons, which might cause a panic and weaken the AUD.
Upcoming NZ news will cover services and sales data on Monday, followed by a dairy price measure on Wednesday.
The New Zealand Dollar could weaken initially, as slower services sector growth is tipped along with slowing retail sales.
NZD traders will be most anticipating the Global Dairy Trade price index, which will be published on Wednesday. The index measures any shifts in global dairy prices and previously posted a -1.6% decline. Another drop in prices could damage the New Zealand Dollar, as dairy exports are a key contributor to economic growth.
Recent Interbank AUD NZD Exchange Rates
At the time of writing, the Australian Dollar to New Zealand Dollar (AUD NZD) exchange rate was trading at 1.0844 and the New Zealand Dollar to Australian Dollar (NZD AUD) exchange rate was trading at 0.9217.