Australian Dollar & New Zealand Dollar Forecasts 2015: AUD/NZD Exchange Rate FX Predictions

December 14, 2014 - Written by Ben Hughes

STORY LINK Australian Dollar & New Zealand Dollar Forecasts 2015: AUD/NZD Exchange Rate FX Predictions

Australian Dollar Climbs Versus New Zealand Dollar (AUD/NZD) - Influential Week Ahead

The Australian Dollar gained against the New Zealand Dollar on Friday after a rather hectic week for the antipodean currencies.

The Australian Dollar both rose and sank after the Reserve Bank of Australia (RBA) announced that it expected the Australian Dollar to tumble further against other majors in the near future.

RBA Governor Glenn Stevens stated: ‘It’s quite likely that it will a year from now be lower than it is today.’ Furthermore, RBA board member John Edwards stated that the Australian economy could face a difficult time in 2015, failing to grow at a fast enough pace to prevent unemployment rising. Edwards stated: ‘There is no doubt we are in a low-growth environment. It’s not enough to create jobs at a sufficiently fast rate to prevent a rise in unemployment.’

Updated AUD Rates
The Pound to Australian Dollar exchange rate is -0.79 pct lower at 1.90003 GBP/AUD.
The Pound to New Zealand Dollar exchange rate is -0.27 pct lower with a conversion rate of 1 GBP equals 2.02183 NZD.
The Australian Dollar to New Zealand Dollar conversion rate is +0.53 pct higher at 1.06411 AUD/NZD

NZ Dollar to Aus Dollar Exchange Rate Today

Meanwhile, the New Zealand Dollar suffered when another decline in dairy prices took place. The latest Fronterra dairy auction saw New Zealand’s largest commodity fall yet again after already depreciating by nearly 50% since February.

However, the ‘Kiwi’ was able to rebound when the Reserve Bank of New Zealand (RBNZ) announced that it would recommence its cycle of interest rate hikes at some point.

RBNZ Governor Graeme Wheeler commented: ‘It is prudent to undertake a period of monitoring and assessment before considering further policy adjustment. Nevertheless, we expect some further policy tightening will be necessary to keep future average inflation near the 2% target mid point and ensure that the economic expansion can be sustained.’

Australian Dollar Exchange Rate Forecast

Sunday may influential for the Australian and New Zealand Dollars with the release of New Zealand House Sales, House Price Index and Performance of Services Index. In addition, Chinese data could move both Trans Tasman currencies.

China is both Australia and New Zealand’s largest trading partner and therefore any positive developments in one of the world’s largest economies can offer the commodity currencies support.

On the flip side, weaker-than-expected figures can cause severe depreciation.

Tuesday will see the release of the Reserve Bank of Australia (RBA) meeting minutes which could see the ‘Aussie’ fluctuate. Westpac’s Leading Index, which offers an indication of economic performance, will also be published. The index resided at 0.03% on the month in October.

New Zealand Dollar Outlook for Week Ahead

The New Zealand Dollar could experience some hefty market movement on Wednesday when New Zealand’s Gross Domestic Product (GDP) figures are published. The second quarter expanded by 3.9% on the year and if Q3 is able to keep up the growth momentum the New Zealand commodity currency could be offered some support. Kiwi Business Confidence stats are scheduled for Friday, which may encourage some final, moderate movement in the New Zealand Dollar exchange rate.

International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.

TAGS: Australian Dollar Forecasts Currency Predictions New Zeala Forecasts