Australian Dollar to New Zealand Dollar (AUD/NZD) Exchange Rate Softens as Kiwi Confidence Increases

March 1, 2015 - Written by Tim Boyer

STORY LINK Australian Dollar to New Zealand Dollar (AUD/NZD) Exchange Rate Softens as Kiwi Confidence Increases

The Australian Dollar softened slightly against the New Zealand Dollar on Friday after New Zealand Business Confidence rose in February.

The ecostat increased from 30.4 to 34.4 and highlights a rise in business owner outlook for the coming 12 months. ANZ representative Cameron Bagrie commented: ‘In cricketing parlance, New Zealand’s innings is progressing nicely; there are runs on the board – the economy is into the fifth year of an economic expansion with depth down the order.’ In addition, the Australian Dollar has been weighted down by the prospect of an interest rate cut in the near future.

The RBA recently cut rates by 25 basis points amid speculation that the Australian economic recovery is slowing and inflation is falling. The last rate cut came as a surprise after the central bank had stated that it hadn’t considered reducing borrowing costs. However, the RBA wasn’t the first to make a surprise rate cut. Other banks such as the Swiss National Bank and the Bank of Canada had already conducted decreases in borrowing costs. Economist Michael Workman stated: ‘Usually when they cut rates, they don’t just do one out of the blue and stop. It’s normally two.’

The week ahead could be an interesting one for the AUD/NZD pair with the release of several important data releases. Sunday will see the release of February’s Australian Performance of Manufacturing Index which had resided in 49 in January. Monday will kick start the new week with Australian New Home Sales stats as well as the Commodity Index. In addition, Chinese data will also be published over the week and could see both Trans Tasman currencies fluctuate. As both Australia and New Zealand’s largest trading partner, Chinese figures can have a massive impact on both Oceanic currencies.

Tuesday will continue on with Australian Current Account and Building Approvals stats. The Reserve Bank of Australia will also be announcing its latest interest rate decision. If investors get cold feet ahead of the release and believe that the central bank could seriously make a cut to the official cash rate, the ‘Aussie’ could plummet. Meanwhile, the ‘Kiwi’ will be sensitive to any changes in dairy prices over the next week as it’s New Zealand’s largest commodity. The New Zealand Dollar will be offered some support if the price of dairy increases further as it has done in recent weeks.

Australian Dollar Exchange Rates Today (01/03/2015)

The Pound to Australian Dollar exchange rate is +0.06 pct higher with a conversion rate of 1 GBP equals 1.97688 AUD.
The Euro to Australian Dollar conversion rate is +0.02 pct higher at 1.43325 EUR/AUD.
The US Dollar to Australian Dollar exchange rate is +0.13 pct higher with a conversion rate of 1 USD equals 1.28151 AUD.
The Swiss Franc to Australian Dollar exchange rate is +0.11 pct higher with a conversion rate of 1 CHF equals 1.34343 AUD.
The Canadian Dollar to Australian Dollar exchange rate is +0.17 pct higher with a conversion rate of 1 CAD equals 1.02465 AUD.
The Hong Kong Dollar to Australian Dollar exchange rate is +0.15 pct higher with a conversion rate of 1 HKD equals 0.16526 AUD.
The New Zealand Dollar to Australian Dollar exchange rate today is converting -0.05 per cent lower at 0.96828 NZD/AUD.

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 Daily Currency Updates New Zea Forecasts