Australian Dollar to New Zealand Dollar (AUD/NZD) Exchange Rate Forecast to Strengthen

  • Posted on

New Zealand Dollars (NZD)

The Australian Dollar to New Zealand Dollar (AUD/NZD) exchange rate advanced by around 0.33% on Tuesday afternoon.

After the Reserve Bank of Australia (RBA) avoided cutting the benchmark rate, despite many predicting that they would cut by 25 basis points, the ‘Aussie’ (AUD) strengthened versus the majority of its most traded currency rivals. Positive data also aided the Australian Dollar surge.

The New Zealand Dollar, meanwhile, strengthened versus many of its major peers thanks to improved trader risk appetite as a result of rising crude prices. Positive domestic data also aided the ‘Kiwi’ (NZD) in addition to tracking ‘Aussie’ gains.

The Australian Dollar to New Zealand Dollar (AUD/NZD) exchange rate is currently trending in the region of 1.0360.

Australian Dollar (AUD) Exchange Rate Surges after RBA Avoided Cutting Rates

With most industry experts predicting that the RBA would cut its lending rate by 25 basis points on Tuesday,  the ‘Aussie’ gained across the board after it transpired that the central bank would hold the cash rate until the next policy meeting.

Glenn Stevens, RBA governor, drew attention to ‘stronger growth in lending to investors in housing assets’, saying: ‘The Bank is working with other regulators to assess and contain risks that may arise from the housing market.’

‘The board judged that, having eased monetary policy at the previous meeting, it was appropriate to hold interest rates steady for the time being,’ he added.

In addition to the RBA holding rates, the ‘Aussie’ (AUD) appreciated thanks to a succession of positive data results. Weekly Consumer Confidence, House Prices, Commodity Price, Building Approvals, Current Account Balance and Net Exports of GDP all managed to better median market forecast figures.

The Australian Dollar to New Zealand Dollar (AUD/NZD) exchange rate has fallen to a low of 1.0320 today.

New Zealand Dollar (NZD) Exchange Rate Strengthens on Market Sentiment

With crude prices rising, trader risk-appetite improved which saw increased demand for high-yielding assets. As a risk-correlated currency, the ‘Kiwi’ advanced as a result. ‘Brent crude prices (are) attempting to rally on rapid week-on-week reduction in US … rig count,’ Morgan Stanley said on in a note on Tuesday.

Additional gains can be attributed to a combination of positive domestic data and tracking its South Pacific counterpart. New Zealand House Prices rose in February from 5.7% to 6.4% on the year, and the ANZ Commodity Price rose by 1.8%; eclipsing the previous figure of 1.0%.

Australian Dollar to New Zealand Dollar (AUD/NZD) Exchange Rate Forecast to Hold Gains

Although there is data pertaining to both South Pacific nations later on Tuesday evening, the Australian Dollar to New Zealand Dollar (AUD/NZD) exchange rate is likely to hold gains. This is due to improved sentiment towards the RBA.

Wednesday is likely to see significant AUD/NZD volatility with the Australian Gross Domestic Product due for publication.

The Australian Dollar to New Zealand Dollar (AUD/NZD) exchange rate climbed to a high today of 1.0407.

« Previous Story

Australian Dollar to New Zealand Dollar (AUD/NZD) Exchange Rate Forecast to Fluctuate on RBA Meeting Minutes

Next Story »

Australian Dollar to New Zealand Dollar (AUD/NZD) Exchange Rate Forecast to Rally as RBNZ Tighten Investor Lending Rules


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.