The Australian Dollar to New Zealand Dollar (AUD/NZD) exchange rate strengthened by around 0.25% on Tuesday afternoon.
After Australia’s economic data failed to impress, the ‘Aussie’ (AUD) softened versus many of its most traded currency rivals. Further depreciation can be attributed to dampened market sentiment with oil prices falling and mounting tensions regarding Greece’s place in the Eurozone.
The New Zealand Dollar, meanwhile, also depreciated as a result of dwindling trader risk-appetite. Further declination is as a result of falling dairy prices after environmentalists’ threatened poisoning infant formula milk in protest against the agricultural poisons used to kill pests such as rats and possums.
The Australian Dollar to New Zealand Dollar (AUD/NZD) exchange rate is currently trending in the region of 1.0493.
Australian economic data printed disappointingly on Tuesday, causing the ‘Aussie’ to soften versus many of its major peers. Weekly Consumer Confidence declined from 112.5 to 110.3. NAB Business Confidence declined from 3 to 0 in February. However, February’s Business Conditions index equalled the previous figure of 2.
Positive Chinese inflation data supported demand for the Australian asset, but the impact was minimal with oil prices and gold prices declining. Damp market sentiment amid tensions in the Eurozone also weighed on demand for the South Pacific asset.
The Australian Dollar to New Zealand Dollar (AUD/NZD) exchange rate dropped to a low today of 1.0454.
Environmentalists, although some would describe them as terrorists, made threats to New Zealand’s dairy industry. In an attempt to prevent the use of agricultural poisons on pests such as rats and possums, environmentalists threatened to poison infant formula milk. This caused dairy prices to plummet which had a detrimental effect on the ‘Kiwi’ (NZD) given that New Zealand is the world’s largest exporter of dairy goods.
‘Whilst there is a possibility that this threat is a hoax, we must treat the threat seriously and a priority investigation is underway,’ the police deputy commissioner, Mike Clement, said in a news release.
‘The ability for anybody to deliberately contaminate infant and other formula during manufacturing is extremely low,’ said Scott Gallagher, the deputy director general for the ministry for primary industries.
Given that dampened market sentiment affects both South Pacific currencies, and with New Zealand’s dairy industry struggling from significantly cooling demand, the Australian Dollar to New Zealand Dollar (AUD/NZD) exchange rate is likely to hold gains for the remainder of Tuesday’s trade. With that being said, however, Australia’s Consumer Confidence data may provoke changes.
The Australian Dollar to New Zealand Dollar (AUD/NZD) exchange rate climbed to a high of 1.0521 today.
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