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Aussie Dollar & NZ Dollar Forecasts Today: AUD vs GBP & NZD Higher as Global Developments Shape Aussie Exchange Rate

October 19, 2014 - Written by Ben Hughes

The Aus Dollar (AUD) exchange rate trended higher vs UK Pound (GBP) and NZ Dollar as last week's forex markets came to a close - the NZD bearish forex trend continues.



australian dollar vs gbp, eur and usd forecastsThe New Zealand Dollar (NZD) has experienced a bearish week against other majors, with falling commodity prices dampening investor sentiment.

With domestic data thin on the ground for both New Zealand and Australia in the second half of this week, global developments have been responsible for movement between the AUD to NZD currency pair.

The Aus Dollar to Euro exchange rate converts at 1 AUD is 0.68523 EUR.
The Aus Dollar to Pound conversion rate is 0.54331 AUD/GBP.
The Aus Dollar to NZ Dollar exchange rate today is converting at 1.10469 AUD/NZD.
The Aus to US Dollar exchange rate today is converting at 0.87442 AUD/USD.
The New Zealand Dollar to Australian Dollar exchange rate today is converting at 0.90523 NZD/AUD.
The New Zealand Dollar to Euro exchange rate today is converting at 0.62029 NZD/EUR.
The New Zealand Dollar to Pound rate converts at 1 NZD is 0.49182 GBP.

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US Dollar Weakening Allows Aus to NZ Dollar Rate Strength



The US Dollar (USD) was trending lower against the Australian Dollar after St Louis Federal Reserve Bank President James Bullard suggested that the current quantitative easing (QE) programme (due to end this month) should continue until December.

Bullard suggests that a decline in inflation could occur if the Fed ends QE now.

However, the Fed President also confirmed that he believes the first US interest rate hike could still take place at the end of the first quarter, provided global market turmoil doesn’t shatter recent progress.

Many economists, however, have pushed back their bets for interest rates rising in the near future.

British Pound to Australian Dollar Rate Outlook



The AUD softened this week after Reserve Bank of Australia (RBA) Assistant Governor Guy Debelle warned against a ‘violent’ adjustment in markets.

Debelle stated: ‘Financial markets have been quiet, maybe too quiet, for much of this year. The sell-off, particularly in fixed income could be relatively violent when it comes.’

However, while some were impressed with his forthrightness, others were less amused.

Forex expert Lee laFraté commented: ‘If that speech was supposed to be Debelle’s audition for the top job at the RBA he really blew it. Central bankers are in a critical role and need to be much more circumspect and cautious in their commentary.’

Although the RBA has attempted to jawbone the Australian commodity currency in recent months, the statements from Debelle were very negative, and caused additional market fear in already cautious investor confidence.

With a global slowdown looming over us, as well as the latest Ebola threat and geopolitical tensions between Russia and Ukraine, Iraq and Syria, to contend with, it’s unsurprising that sentiment toward safe-haven currencies has increased in in recent weeks.

The prospect of delayed interest rate hikes in the US due to a slowdown has put a crimp in any RBA hopes to begin ‘normalising’ interest rates and soften the AUD.

Commonwealth Bank of Australia Chief Economist Michael Blythe commented: ‘There’s this widespread view that the RBA can’t move before the Fed, but the reality is they’ve done it many times. The issue’s what it might do to the currency. Outside of the US most central banks are very keen to see the Fed start doing something more concrete because that is widely seen as a trigger for the US Dollar.’

Aus Dollar vs NZ Dollar Forecast

Looking ahead, Sunday will see the release of New Zealand’s Performance of Services Index, which reached 57.9 in August.

The ANZ New Zealand and Australian Consumer Confidence Indexes will be published on Monday.

The Aus Dollar may experience some movement on Tuesday with the release of the RBA’s meeting minutes and New Zealand’s Credit Card Spending figures.

In addition, any global developments will see movement in the AUD to NZD.

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