Aus and NZ Dollar Exchange Rate Forecasts - Declines Predicted for Pound to Australian Dollar & New Zealand Dollar Rates

August 25, 2014 - Written by Tim Boyer

STORY LINK Aus and NZ Dollar Exchange Rate Forecasts - Declines Predicted for Pound to Australian Dollar & New Zealand Dollar Rates

Currency News UK presents our Aus + NZ Dollar Exchange Rate Forecasts and Analysis - As the week progresses, we continue to see losses for the Pound to Australian Dollar and New Zealand Dolar exchange rates; With no major data releases to assist Sterling, further declines could be seen.

The Australian Dollar (AUD) to New Zealand Dollar (NZD) exchange rate trended up in the currency market last Friday ahead of the central bankers meeting held at Jackson Hole in Wyoming.

- The Pound Sterling to Australian Dollar exchange rate is trading down -0.1% at 1.78415 GBP/AUD.
- The Pound Sterling to New Zealand Dollar exchange rate is trading down -0.16% at 1.98982 GBP/NZD.

The ‘Aussie’ has become more popular in the currency market against the US Dollar (USD) which is presently trending lower ahead of the conference in which Federal Reserve Chairwoman, Janet Yellen, prepares to make her statements regarding the US labour markets and monetary policy.

If the Federal Reserve proved dovish, the ‘Aussie’ may retain its gains against other majors in the currency market. The Australian Dollar dipped on Thursday following poor Chinese figures, however was able to gain back some ground in the market. Westpac currency expert Sean Callow stated: ‘What we’ve seen on a day with no particular news is an extension of the New York rally in the Australian Dollar.’ The New Zealand Dollar (NZD) conversely, is hurtling toward a weekly drop against the US Dollar of up to 0.9%.

The NZ Dollar and the Aussie and the Fate of Jackson Hole

The New Zealand Dollar could head towards further losses if the meeting today in Jackson Hole uncovers a hawkish Federal Reserve. Investors and economists will be listening to Yellen’s statements with interest, as the US Dollar has recently been dominating the currency market. Westpac Banking representative Imre Speizer commented: ‘Is she going to dial back on the hawkish script we saw in the FOMC minutes? That will be the question. If Yellen signals that rates are going up, then it’s “come on US Dollar” and the “Kiwi”/US falls towards 83 (US cents).’

The Australian Dollar however, has remained stubbornly persistent in recent weeks, climbing back up against the US Dollar—whenever disruptions emerge—into the 93/94 US cents region. On Thursday the Chinese Manufacturing PMI attained less than expected, published at only 50.3 in August; far less than the economists forecast of 51.5 and July’s 51.7. National Australia Bank representative Emma Lawson stated: ‘We’ve seen some profit taking and position unwinding, ahead of the Jackson Hole Fed symposium, which has left yields a little lower and the US Dollar lower. Pretty much anything could have happened in the data, but it is being ignored ahead of such a well anticipated event. And it is likely to remain very, very quiet today, ahead of Fed Chair Janet Yellen’s speech.’

Upcoming Forecast for the AUD to NZD Currency Pairing

Next week will see the release of the New Zealand Trade Balance on Monday, followed by New Zealand Weekly Consumer Confidence and Food Prices figures on Tuesday. Australian Consumer Sentiment will become evident on Wednesday, whilst Thursday will see the publication of Australian New Home Sales and New Zealand Building Permits.

The biggest factor to affect the currency market at the moment is today’s Jackson Hole meeting. Dependent on the tone of the Federal Reserve, will determine the ability of other currencies to climb in the market. Callow continued: ‘The market assumes she [Yellen] is not going to threaten to raise rates any time soon. Everyone seems to have the same opinion so we’ll see whether it works out but that seems to be the market wants to trade.’

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TAGS: Australian Dollar Forecasts Currency Predictions Daily Cur Forecasts