Australian Dollar to New Zealand Dollar Forecast: AUD/NZD Exchange Rate Static Business Confidence and OPEC Meeting

Modified: Monday, 1 December 2014 12:20 BST - Written by Frank Davies

STORY LINK Australian Dollar to New Zealand Dollar Forecast: AUD/NZD Exchange Rate Static Business Confidence and OPEC Meeting

The Australian Dollar (AUD) was trading within a narrow range against the New Zealand Dollar (NZD) exchange rate after New Zealand Business Confidence rose in November.

The index showed an increase from 26.5 to 31.5 in November, marking the second consecutive month of improvement. Dairy prices have fallen by almost 50% this year which has caused a large amount of depreciation for the New Zealand Dollar. ANZ Chief Economist Cameron Bagrie commented: ‘Sentiment across the heartland showed a healthy lift; that’s surprising considering continuing falls in dairy prices and real prospects of a sub-NZ$5 dairy payout.’ New Zealand’s ANZ Activity Outlook also rose in November from 37.8 to 41.7.

The Australian Dollar to Canadian Dollar exchange rate converts -0.19 per cent lower at 1 AUD is 0.96959 CAD.
The Australian Dollar to Euro exchange rate converts -0.31 per cent lower at 1 AUD is 0.68130 EUR.
The Australian Dollar to Pound Sterling conversion rate is -0.27 pct lower at 0.54243 AUD/GBP.
The Australian Dollar to New Zealand Dollar exchange rate converts -0.07 per cent lower at 1 AUD is 1.08446 NZD.
The Australian Dollar to US Dollar conversion rate is -0.33 pct lower at 0.84812 AUD/USD.

Meanwhile, Australia saw Private Sector Credit figures rise on the year in October to 5.7%. However, one of the most prominent factors affecting the Australian Dollar is the recent Organisation of the Petroleum Exporting Countries (OPEC) meeting which resulted in a decision to maintain the current level of oil production even though an oil excess has been driving prices lower in recent months. As a result, commodity prices in many sectors sunk, offering little support for commodity currencies.

Australian Dollar to New Zealand Dollar Exchange Rate Forecast

In the week ahead, the Australian Dollar to New Zealand Dollar exchange rate may move on several significant events. Sunday will see the Australian Performance of Manufacturing Index released as well as New Zealand’s Terms of Trade, and Australian Securities Inflation. Monday will see both Australia and New Zealand’s largest trading partner, China, publish its Manufacturing Purchasing Managers Index (PMI) which could help to bolster the Oceanic currencies if favourable. However, with speculation circulating that China is experiencing a slowdown, the data may print less favourably than forecast.


The Australian Inventories, Company Operating Profit, and Commodity Index are all out on Monday also, and although they are data of little influence, may be able to help prop up the ‘Aussie’ against other currencies. Tuesday will be highly influential for the Australian Dollar, however, with the Reserve Bank of Australia’s (RBA) Interest Rate Decision announced.

Although the RBA is likely to keep the official cash rate at 2.50%, the event could still see some AUD movement. Later on Tuesday will be the AIG Performance of Service Index which resided at 43.6 in October.

Wednesday will continue on with the influential stats when Australian Gross Domestic Product (GDP) figures materialise. With little New Zealand domestic data out in the remainder of the week, the AUD/NZD pair will be reliant on ‘Aussie’ movement and global developments.

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 Daily Cur Forecasts