Australian Dollar Rates Today - AUD/NZD Exchange Rate Firm; Aus to Euro (EUR) up & Pound (GBP) Down

August 31, 2014 - Written by David Woodsmith

STORY LINK Australian Dollar Rates Today - AUD/NZD Exchange Rate Firm; Aus to Euro (EUR) up & Pound (GBP) Down

The Australian Dollar to NZ Dollar exchange rate (AUD/NZD) has put in a strong performance recently, trading as a favourite amongst many forex investors, despite the Reserve Bank of Australia claiming that the currency is overvalued.

The Australian Dollar (AUD) has been able to reach high levels of trade versus other majors such as the Euro (EUR), Yen (JPY) and Pound (GBP) this week, following some favourable figures. The New Zealand Dollar however has slipped in the currency markets as the New Zealand Business Confidence has tumbled.

The current forex market overview is as follows:

The Australian Dollar to Canadian Dollar exchange rate is 1.01599 AUD/CAD.

The Australian Dollar Exchange Rate Rising Amid Ukraine Tensions

The Australian Dollar has been trading higher as the situation in Ukraine escalates with President Barack Obama of the United States accusing Russia of ordering troops into Ukraine and causing violent acts.

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Obama commented: ‘Russia has deliberately and repeatedly violated the sovereignty and territorial integrity of Ukraine and the new images of Russian forces inside Ukraine made that plain for the world to see.

This comes as Ukrainian forces are making progress against the Separatists.’ However, with sanctions already placed against Russia, Obama has noted that any additional involvement by Russia in Ukraine ‘will only bring more costs and consequences for Russia.’ The Australian Dollar is able to prove fairly sturdy amid a backdrop of geopolitical uncertainty unlike some other currencies; however, the ‘Aussie’ is likely to trade lower ahead of the Reserve Bank of Australia interest rate meeting next week which will allow statements from the RBA which may influence the Australian Dollar.

Currency expert Francisco Solar stated: ‘The “Aussie” has held on to gains ahead of the Reserve Bank of Australia meeting next week.’

Forecast for the Australian Dollar to New Zealand Dollar Exchange Rate

Next week will see a highly influential week for the Australian Dollar with the publications of the Performance of Manufacturing Index on Monday, followed by Consumer Confidence and the Reserve Bank of Australia’s Interest Rate Decision on Tuesday. Expert in the field Joseph Capurso stated: ‘The RBA may tweak its language and a negative GDP reading could also move the “Aussie” a fair bit.’ Wednesday will witness the figures for the Australian Gross Domestic Product and Performance of Service releases, followed by the Australian Trade Balance and Retail Sales on Thursday. Friday will finish the week with the Australian Performance of Construction Index; all of these events may prove highly significant for the ‘Aussie’ which is presently trending well against other peers.

Conversely New Zealand will see a relatively quiet week by way of data releases with nothing of notable significance likely to shake the ‘Kiwi’ too much next week. Friday saw the New Zealand Dollar slip lower after Business Confidence fell to 24.4 in August, from 39.7 in July. The New Zealand Dollar saw gains earlier this week from the news that dairy giant Fronterra had been purchasing shares in an influential Chinese dairy provider, which will mean that New Zealand will export more to China in the face of their milk shortage. The New Zealand Dollar has slumped of late after dairy prices have been slashed by over 40% since February, which hasn’t boded well for the commodity currency.

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