Australian Dollar to New Zealand Dollar Weekly Forecast: RBA Minutes and Dairy Prices in Focus
Last week saw the Australian Dollar to New Zealand Dollar exchange rate fluctuate wildly, though AUD NZD ultimately closed trading on Friday back at the week’s opening levels of 1.06.
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The week to come is set to focus primarily on Reserve Bank of Australia (RBA) minutes as well as global dairy prices, although other lesser announcements may still shift investor sentiment about the Australian Dollar.
The RBA’s minutes are expected to come on Tuesday morning, which could help improve sentiment after the recent International Monetary Fund (IMF) advice to cut interest rates.
Other notable Australian news will include Wednesday’s Q4 wage price index (measuring changes in national wages) as well as a measure of construction work in the same quarter.
NZD movement may occur when Monday’s January services PMI is released, along with Tuesday’s ANZ Roy Morgan consumer confidence score for February.
The main data release will be the Global Dairy Trade price index on Wednesday, which could trigger an NZD rally if it repeats the rise seen earlier in the month.
The Australian Dollar and the New Zealand Dollar could be mutually influenced by events next week, should officials from Australian or New Zealand further discuss the possibility of reviving the Trans-Pacific Partnership (TPP).
The trade deal was almost canned by Donald Trump’s US withdrawal soon into his Presidency, but it remains on the table having been discussed by AU and NZ leaders last week.
If it looks like a new and improved TPP is going ahead, the AUD is likely to appreciate more, given that Australia has a larger export capacity.
Recent AUD NZD Interbank Exchange Rates
At the time of writing, the Australian Dollar New Zealand Dollar (AUD NZD) exchange rate was trending in the region of 1.06 and the New Zealand Dollar Australian Dollar (NZD AUD) exchange rate was trending in the region of 0.93.