Australian Dollar exchange rates were struggling as the week progressed due to a lack of progress in the growth of worker incomes.
The New Zealand Dollar has also been in low demand, though the most recent domestic data has actually been significantly positive.
The Australian Dollar to New Zealand Dollar exchange rate fell by -0.2% on Wednesday, with AUD also recording losses against several of its other major peers.
While the Westpac leading index for July rose from -0.2% to 0.1%, this positivity was offset by the fact that the annual and quarterly Q2 wage indexes failed to shift from 2.1% and 0.5%, respectively, signifying a limited level of wage growth.
An additional blow to the Australian economy has come from mining giant BHP Billiton, which has recorded its worst loss on record, thereby putting future iron ore production into question.
In more positive news, Australian PM Malcolm Turnbull has stated in response to a proposed ‘cooperative parliament’ that;
‘Nobody should underestimate the importance of this moment as a test of the capacity of our political system to make the right calls on the nation’s behalf. If we see this plan through over the next three years, I believe Australians will have every reason to approach the decades ahead as they do today – confident, outward-looking, secure and self-assured’.
The New Zealand Dollar was performing almost as badly as the Australian Dollar on Wednesday, with losses being seen against all but the even weaker ‘Aussie’.
New Zealand’s latest domestic data was actually positive, with the unemployment rate for Q2 falling from 5.2% to 5.1%, against forecasts of a rise to 5.7%.
Responding to the news, ASB Bank Ltd. Chief Economist Nick Tuffley urged restraint, stating;
‘Statistics New Zealand is unable to distinguish whether it is genuine employment strength or merely the impact of surveying changes. As such, we cannot read into the second-quarter results any implications about the strength of the economy or implications for the interest rate outlook’.
Australian employment data is the next release likely to impact AUD NZD exchange rate trading.
At the time of writing, predictions were pessimistic, with a rise in the rate from 5.8% to 5.9% expected. This is set to be accompanied by a dip in the number of employed persons of -5k.
On Friday New Zealand will deliver the last announcement of the week, the visitor arrivals figure for July. This previously came in at 10.9%.
The Australian Dollar New Zealand Dollar (AUD NZD) exchange rate has been trending in the region of 1.0550 and the New Zealand Dollar Australian Dollar (NZD AUD) exchange rate has been trending in the region of 0.9483 recently.
Disclaimer: Currency-Converter.com.au and its data provider, TorFX, make no claims regarding the validity or exactness of the information provided in on this site and will not be held liable for any use, interpretation, or other implementation of the information provided. Currency-converter.com.au make no warranties, express or implied, as to results to be obtained from use of such information, and make no express or implied warranties of condition, quality, performance, merchantability or fitness for a particular purpose or use. Currency-converter.com.au shall not have any liability for the accuracy of the information contained in the services provided or ommissions there in which are made available on a free, as-is basis. None of the aforementioned parties shall be liable for any third party claims or losses of any nature, including, but not limited to, lost profits, punitive, consequential, special, incidental, indirect or similar damages even if advised of the possibility of such damages. Rates offered are interbank rates and may not be the same as offered by your financial institution, and do not include commissions. Rates shown on this site will vary from those provided by TorFX or other providers linked to from this site.