Australian Dollar to New Zealand Dollar (AUD/NZD) Exchange Rate Forecast: Chinese Data, NZ Card Spending Sinks ‘Kiwi’

  • Posted on

New Zealand Dollars (NZD)

The Australian Dollar to New Zealand Dollar (AUD/NZD) exchange rate recorded hefty gains on Thursday after data for both New Zealand and China emerged.

As China is both Australia and New Zealand’s largest trading partner, the ‘Aussie’ and ‘Kiwi’ exchange rates can be extremely sensitive to any developments in the nation.

China’s HSBC Manufacturing Falls to 12-Month Low

Thursday brought disappointment for the Oceanic currencies when China’s HSBC Manufacturing Purchasing Managers Index (PMI) slipped from 49.6 to 49.2 in April—the lowest number in the past 12 months. Any figure residing below the 50.0 benchmark indicates contraction in the sector, while above denotes growth.

Industry expert Zhao Yang commented: ‘The growth momentum remains weak in April, which calls for further policy easing. The next step might be a cut in interest rates and I expect they will do that this quarter.’

The People’s Bank of China (PBOC) recently made a cut to its reserve requirement ratio (RRR) in a bid to boost economic growth in the nation after already loosening monetary policy on several occasions this year.

Economist Dariusz Kowalczyk commented: ‘The soft number implies continued underlying weakness in the manufacturing sector despite simulative policies rolled out since last November. Markets will not expect more easing, including on the monetary front.’

However, unlike the ‘Kiwi’, the decline in Chinese manufacturing data failed to pressure the ‘Aussie’ exchange rate significantly lower as investors priced out the possibility of a rate cut by the Reserve Bank of Australia (RBA) at next month’s policy meeting. The Australian economy recorded inflation growth on Wednesday which led many economists to believe the nation could escape a borrowing cost haircut for another month.

Meanwhile, the New Zealand Dollar’s bad day continued when New Zealand Credit Card Spending slipped from 5.8% to 5.2% on the year in March.

Additionally, the New Zealand Dollar was pressured lower by Reserve Bank of new Zealand (RBNZ) comments that suggested a downward adjustment to the official cash rate may need to be made in order to combat subdued inflation.

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

The Australian Dollar to New Zealand Dollar (AUD/NZD) exchange rate could be in for an interesting day on Friday with RBA official Guy Debelle speaking about the foreign exchange market.

Any mention of the recent spikes in ‘Aussie’ trading just before interest rate decisions were announced or minutes were released could impact the AUD/NZD currency pair.

The Australian Dollar to New Zealand Dollar (AUD/NZD) exchange rate is trading at 1.0216. The New Zealand Dollar to Australian Dollar (NZD/AUD) exchange rate was trending in the region of 0.9794.

« Previous Story

Australian Dollar to New Zealand Dollar (AUD/NZD) Exchange Rate Forecast to Strengthen as Formula Demand Milk Slumps

Next Story »

Australian Dollar to New Zealand Dollar (AUD/NZD) Exchange Rate Forecast: Upcoming RBA Interest Rate Decision Inspires Dovish Trading


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.