AusDollar and NZ Dollar Exchange Rate Outlook, FX Forecasts & Current Conversion Rates

November 16, 2014 - Written by Toni Johnson

STORY LINK AusDollar and NZ Dollar Exchange Rate Outlook, FX Forecasts & Current Conversion Rates

The Australian Dollar slipped against the New Zealand Dollar (AUD/NZD) last Friday (14/10/2014) after a turbulent previous day's trading.

The Reserve Bank of Australia (RBA) attempted to jawbone the Australian commodity currency lower when it stated that it was still prepared to intervene in the foreign exchange market. RBA Deputy Governor Christopher Kent stated: ‘We haven’t ruled it out. It’s still there as an option, if needed. [The ‘Aussie’ remains] too high, relative to our fundamentals.’

The Pound to Australian Dollar exchange rate today is converting -0.11 per cent lower at 1.78926 GBP/AUD.
The Euro to Australian Dollar exchange rate converts -0.14 per cent lower at 1 EUR is 1.42973 AUD.
The US Dollar to Aus Dollar exchange rate is -0.08 pct lower at 1.14207 USD/AUD.
The Aus Dollar to NZ Dollar exchange rate is -0.22 pct lower with a conversion rate of 1 AUD equals 1.10379 NZD.
The Aus to US Dollar exchange rate is +0.08 pct higher with a conversion rate of 1 AUD equals 0.87560 USD.

Federal Reserve Interest Rate Hike Delay Offers Aus Dollar Support

Furthermore, the RBA statement was followed by New York Federal Reserve President William Dudley suggesting that it was still too early to hike US interest rates. As a result, higher risk currencies such as the Australian and New Zealand Dollar’s advanced against other majors. The Fed President’s statement came in a week that saw the Bank of England (BoE) also announce that any increases in borrowing costs were a long way off—despite speculation earlier in the year for a rate rise around Christmas.

Sentiment toward both the Australian and New Zealand Dollar’s improved after the US statement as investors readjusted their bets for rate hikes later in 2015. However, Thursday also saw the release of weaker-than-expected Chinese data—a highly influential factor for both the ‘Aussie’ and ‘Kiwi’ commodity currencies. As China is a major trading partner of both nations, any significant data has the ability to impact the currency’s movement.

Australian Dollar Remains Sturdy amid Downbeat Chinese Data

Thursday saw Chinese Industrial Production shrink to 7.7% from 8.0% on the year —a result that offered little support to Australia given that its largest export is iron ore. Moreover, Chinese Retail Sales also fell on the year from 11.6% to 11.5%. However, the Australian Dollar remained strong; as industry expert Boris Schlossberg states: ‘Not even the subpar Chinese data... could slow down the short-covering rally and by early London dealing, the Australian Dollar was trading at 87.40 US cents, within striking distance of the 87.50 cent level.’

This week has been relatively uneventful by way of domestic data for Australia and New Zealand. However, next week could be more influential for both of the nations. New Zealand’s Performance of Services Index is out on Monday. The gauge resided at 58 points in September and investors will be hoping for another solid reading. New Zealand Retail Sales Excluding Inflation figures will follow shortly after. Sales rose by 1.2% in the second quarter.

Meanwhile, Tuesday could see some significant Australian Dollar movement when the Reserve Bank of Australia releases its November Meeting Minutes. Any hawkish remarks could cause the Australian Dollar to rally; however, the Australian central bank has made it clear that it enjoys a lower ‘Aussie’, making any hawkish statements unlikely.

Thursday may offer AUD/NZD fluctuations with the release of New Zealand Job Advertisements and Producer Prices, as well as Australian Foreign Exchange Transactions and China’s Manufacturing Purchasing Managers Index (PMI).

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TAGS: Australian Dollar Forecasts Currency Predictions Daily Cur Forecasts