Australian Dollar to New Zealand Dollar Exchange Rate Today: AUD/NZD Slips on RBA Statements

February 15, 2015 - Written by Minesh Chaudhari

STORY LINK Australian Dollar to New Zealand Dollar Exchange Rate Today: AUD/NZD Slips on RBA Statements

Latest Australian Dollar (AUD) to New Zealand Dollar (NZD) Exchange Rate Forecasts and Predictions

The Australian Dollar exchange rate slipped against the New Zealand Dollar after the Reserve Bank of Australia commented on the state of the Australian economy.

RBA Governor Glenn Stevens gave his opinion on several aspects of the economic recovery, including interest rate cuts.

Stevens commented: ‘We were hoping for a period of stability, but we were faced with the question of if the economy needed a bit of support could we provide that? [After] various events and a fresh look at the outlook, we came to the conclusion that [the economy] could do with a bit more help.’ The Reserve Bank of Australia recently cut rates from 2.50% to 2.25% as concern for Australia’s projected growth heightened. Stevens continued: ‘While several key fundamentals are in place for stronger performance, clear signs of a near-term strengthening remain unconvincing at this stage. This is a weaker outcome than we had expected six months ago.’

Australian Dollar Exchange Rate Outlook

Stevens went on to say that the Australian Unemployment Rate was likely to reach a higher level than initially estimated.

The Australian economy saw the loss of 12.2K jobs in January after December’s 42.3K gain.

The disappointing ecostat allowed the Unemployment Rate to rise to 6.4% from 6.1%-significantly higher than the expected 6.2%.

Prime Minister Tony Abbott acknowledged that the significant rise in unemployment was ‘disappointing’ but counteracted it by reminding citizens that ‘213,000 jobs were created last year. The rate of jobs growth last year was three times the rate achieved in the last year of the former Labour government.’

New Zealand Dollar Exchange rate Forecast

Meanwhile, the New Zealand Dollar was able to climb against its Australian counterpart on the news of rising joblessness.

The NZD has remained relatively robust as New Zealand’s higher yields attract investors looking for a better return.

New Zealand’s reserve bank recently intimated that it hoped for a period of stability when it came to interest rates.

Although it didn’t suggest it would be continuing the rate hike cycle from last year, it was a more favourable comment amid a climate of central bank rate cuts.

However, New Zealand Food Prices increased by 1.3% in January after December’s 0.3% rise which offered a little support to the ‘Kiwi’.

Sunday will see the release of New Zealand’s Performance of Services and Retail Sales Excluding Inflation figures which could bolster the Trans Tasman currency if favourable.

Tuesday could be a more influential day for the ‘Aussie’ when Australia’s Conference Board Leading Index is published.

Australian Dollar Exchange Rates Today - Updated 16/02/2015 PM

The Pound to Australian Dollar exchange rate today is converting -0.31 per cent lower at 1.97755 GBP/AUD.
The Euro to Australian Dollar exchange rate today is -0.48 per cent lower at 1.46089 EUR/AUD.
The US Dollar to Australian Dollar rate today is -0.02 per cent lower at 1.28762 USD/AUD.
The Canadian Dollar to Australian Dollar is converting -0.15 per cent lower at 1.03248 CAD/AUD.
The New Zealand Dollar to Australian Dollar exchange rate is converting +0.14 per cent higher at 0.96440 NZD/AUD.

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