Australian Dollar in Narrow Range versus New Zealand Dollar (AUD/NZD) following Oceanic Data

Modified: Sunday, 12 April 2015 23:58 BST - Written by Frank Davies

STORY LINK Australian Dollar in Narrow Range versus New Zealand Dollar (AUD/NZD) following Oceanic Data

AUD/NZD Exchange Rate Trends in Narrow Range

The Australian Dollar remained in a tight range against the New Zealand Dollar toward the close of the week after Oceanic data releases emerged overnight. The Australian Home Loans figure rose by only 1.2% in the month of February after January’s upwardly revised -1.7% contraction, despite economists expecting a more favourable 3.0%. The rebound is expected to be a result of the Reserve Bank of Australia’s recent rate cut, designed to boost economic growth in the nation. However, the ecostat did reside below expectations and some economists have suggested that in itself is enough of a reason for the RBA to cut rates again in the near future.

Economist Michael Workman stated: ‘Today’s lending data may be early signs that the warnings by the RBA and changes introduced buy APRA are having some effect.’

However, not everyone’s in agreement and economist Janu Chan argues that weaker lending figures could cool housing market concerns at the next RBA meeting. The Australian Prudential Regulation Authority has been attempting to cool investor activity in the housing market by weakening investor lending.

Chan stated: ‘It is too early to conclude that recent measures by APRA to cool investor lending are working. Home lending growth has eased for both owner-occupiers and investors, but the level of overall financing for housing remains buoyant.’

Dip in Australian Investment Lending Sees AUD/NZD Exchange Rate Decline

Additionally, the ‘Aussie’ exchange rate was dampened by a significant fall in Investment Lending. The value of loans to individuals and businesses contracted by -3.4% in February after January’s -0.3%. Meanwhile, the New Zealand Dollar has been experiencing a quiet week for movement by way of domestic data with very few Kiwi ecostats out for release. Thursday’s Australasian session saw the release of New Zealand’s Heavy Truckometer figure for March, which fell by -0.4% on the month, the same as February. Next week may be a little more exciting for the ‘Kiwi’ exchange rate with Sunday kicking off the data releases with March’s New Zealand Card Spending ecostats. February has seen Retail Card Spending rise by 1.0% while the ordinary Card Spending figure recorded only a 0.4% rise.

The Australian Credit Card Purchases and Credit Card Balances stat will be out on Monday and is expected to only offer the ‘Aussie’ exchange rate some mild movement. Both currencies could fluctuate in response to any change in commodity prices, as well as any major global developments.


Central bank statements could also influence the way the AUD/NZD currency pair trades.

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