Australian Dollar to New Zealand Dollar (AUD/NZD) Exchange Rate Advances as Growth Cuts Better Than Predictions

Modified: Monday, 9 February 2015 09:47 BST - Written by Tim Boyer

STORY LINK Australian Dollar to New Zealand Dollar (AUD/NZD) Exchange Rate Advances as Growth Cuts Better Than Predictions

Today's Australian Dollar (AUD) to New Zealand Dollar (NZD) Exchange Rate Forecasts

The Australian Dollar registered gains versus the New Zealand Dollar on Friday after the Australian central bank cut growth forecasts by less than most economists had suggested.

The Reserve Bank of Australia released its monthly monetary policy statement on Friday following its decision to cut its benchmark interest rate by 25 basis points.

However, the RBA only cut economic growth estimations by a quarter of a percentage point.

After the initial announcement of the rate cut, economists had predicted a dovish RBA and a majorly revised growth outlook. Strategist David Scutt commented: ‘The downgrade to CPI and GDP growth were probably a little better than what the market was expecting.’

Australian Dollar Exchange Rate Outlook

In addition, the Australian Performance of Construction Index rose in January, although it remained in contraction territory.

The index rose from 44.4 to 45.9, edging closer to the 50.0 benchmark which separates contraction from expansion.


The HIA report stated: ‘House builders noted a further easing in customer enquiries and sales. More positively, there were reports of a lift in demand for commercial development projects. Engineering construction continued to exhibit weakness, contracting for a seventh consecutive month. Commercial construction also declined, but conditions moved close to stabilisation.’

However, speculation suggests that sentiment amongst home builders is declining as the report remains in contraction territory.

HIA economist Harley Dale commented: ‘We had extremely healthy readings for house building and apartment building through most of 2014 before they fell away a bit at the end of the year and of course we’ve seen that continue into January.’

New Zealand Dollar Exchange rate Forecast

Meanwhile, the New Zealand Dollar has been trading amid a lack of Kiwi data at the end of the week, leaving a lot of its movement up to global developments and commodity prices.

The NZD has risen by 2.2% in the past week, its best weekly advance for around a year.

However, US employment data out later in Friday’s session could pressure both the AUD and the NZD lower if favourable.

US Dollar Strengthens Sending AUD/USD and NZD/USD Lower

The Trans Tasman currencies advanced in the market on a softer USD and increased risk sentiment; but fell after US labour market made significant improvements.

Sunday will see the release of Chinese Trade Balance stats which could affect both of the Oceanic currencies. As both Australia and New Zealand’s largest trading partner, any developments in China can alter the ‘Aussie’ and the ‘Kiwi’.

Australian Dollar Exchange Rates Today - 09/02/2015

The Australian Dollar to Canadian Dollar exchange rate converts +0.23 per cent higher at 1 AUD is 0.97396 CAD.
The Australian Dollar to Euro exchange rate today is converting +0.04 per cent higher at 0.68635 AUD/EUR.
The Australian Dollar to Pound Sterling exchange rate today is converting +0.38 per cent higher at 0.51126 AUD/GBP.
The Australian Dollar to New Zealand Dollar exchange rate today is converting -0.46 per cent lower at 1.05100 AUD/NZD.
The Australian Dollar to US Dollar exchange rate today is converting +0.35 per cent higher at 0.77890 AUD/USD.

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TAGS: Australian Dollar Forecasts Currency Predictions Daily Cur Forecasts