currency exchange

FX Blog

Understanding the NZ to AU Exchange Rate

Navigating the nuances of foreign exchange can be daunting, especially when it involves frequently fluctuating currencies like the New Zealand Dollar (NZD) and the Australian Dollar (AUD). Whether you’re planning a business investment, managing cross-border transactions, or simply sending money home, understanding the dynamics of the NZD to AUD exchange rate is crucial.

What Influences the NZD to AUD Exchange Rate?

Economic Indicators:

Both New Zealand and Australia have vibrant economies that are closely tied to each other, yet distinct in many ways. Economic indicators such as GDP growth rates, employment data, and inflation rates significantly impact the exchange rate. For instance, if New Zealand’s economy is perceived to be stronger than Australia’s, the NZD may appreciate against the AUD.

Interest Rates:

Decisions by the Reserve Bank of New Zealand (RBNZ) and the Reserve Bank of Australia (RBA) on interest rates play a pivotal role. Higher interest rates offer lenders in an economy a higher return relative to other countries. Therefore, higher interest rates attract foreign capital and cause the exchange rate to rise, and vice versa.

Commodity Prices:

Both countries are major exporters of commodities, but the types of commodities they export vary. Australia’s heavy reliance on iron ore and coal contrasts with New Zealand’s export profile of dairy products and meat. Fluctuations in these commodity prices can significantly affect the NZD to AUD exchange rate.

Political Stability and Economic Performance:

Political events can create uncertainty or stability in a country, influencing investor confidence and currency valuations. Any political turmoil or economic downturn can lead to a depreciation of the domestic currency against its counterparts.

Recent Trends and Future Projections

In recent times, we’ve seen the NZD to AUD rate respond to global economic pressures, trade negotiations, and changes in domestic policies. Understanding these trends through historical data helps in predicting future movements. For instance, the impact of the COVID-19 pandemic on tourism and exports had notable effects on both currencies.

How Can Direct FX Help?

At Direct FX, we provide real-time, competitive exchange rates and insights into the NZD to AUD exchange dynamics. Our platform offers tools and resources to help you make informed decisions:

  • Real-Time Data: Access up-to-the-minute exchange rates and market insights.
  • Expert Analysis: Our team offers analyses and forecasts based on current market conditions.
  • Customisable Solutions: Whether you need to make a one-time transfer or manage regular payments, our solutions are tailored to meet your needs.

 

Understanding the factors that influence the NZD to AUD exchange rate is essential for anyone engaged in trans-Tasman financial activities. By staying informed and choosing the right partner like Direct FX, you can navigate this complex landscape with confidence and efficiency.

Stay tuned for our next blog post where we delve into the historical trends of the NZD to AUD exchange rate, providing you with a clearer picture of what to expect in the future.

FX News

EURO/AUD Transfer

The Australian Dollar (AUD) held the 0.6155 (1.6250) level Monday after breaking through prior resistance at 0.6135 (1.6300) Friday after risk mood bought back buyers of AUD. At a fresh early January 2024 level, the AUD now targets the yearly open at 0.6185 (1.6170). Monday’s Eurozone PMI read came in higher printing at 53.3 vs 52.9 in April with European Retail Sales due later today with a rebound off March’s -0.5% decline to 0.6% expected.

Current Level: 1.6265
Resistance: 1.6500
Support: 1.6160
Last Weeks Range: 1.6229- 1.6495

FX News

AUD/EURO Transfer

The Australian Dollar (AUD) held the 0.6155 (1.6250) level Monday after breaking through prior resistance at 0.6135 (1.6300) Friday after risk mood bought back buyers of AUD. At a fresh early January 2024 level, the AUD now targets the yearly open at 0.6185 (1.6170). Monday’s Eurozone PMI read came in higher printing at 53.3 vs 52.9 in April with European Retail Sales due later today with a rebound off March’s -0.5% decline to 0.6% expected.

Current Level: 0.6148
Resistance: 0.6190
Support: 0.6060
Last Weeks Range: 0.6062- 0.6161

FX News

GBP/AUD Transfer

This week’s main attraction is a double header of central bank action with the Bank of England (BoE) and the Reserve Bank of Australia (RBA) both releasing policy statements and cash rates. The Aussie kicked back from 0.5180 (1.9300) mid-week closing around the 0.5275 (1.8960) area extending its run to a 17-week high. Both central banks should retain policy, BoE at 5.25% and the RBA at 4.35%. We see a small chance the RBA could hike to 4.6% but this would be a gutsy move. The BoE could start conversations around cutting sooner than later but will most likely confirm a wait and see approach based on incoming data over the next couple of months. Also of note is monthly UK GDP for March with no improvement from 0.1% expected. We favour a retest of 0.5305 (1.8850) over the week.

Current Level: 1.8971
Resistance: 1.9100
Support: 1.8900
Last Weeks Range: 1.8940- 1.9308

FX News

AUD/GBP Transfer

This week’s main attraction is a double header of central bank action with the Bank of England (BoE) and the Reserve Bank of Australia (RBA) both releasing policy statements and cash rates. The Aussie kicked back from 0.5180 (1.9300) mid-week closing around the 0.5275 (1.8960) area extending its run to a 17-week high. Both central banks should retain policy, BoE at 5.25% and the RBA at 4.35%. We see a small chance the RBA could hike to 4.6% but this would be a gutsy move. The BoE could start conversations around cutting sooner than later but will most likely confirm a wait and see approach based on incoming data over the next couple of months. Also of note is monthly UK GDP for March with no improvement from 0.1% expected. We favour a retest of 0.5305 (1.8850) over the week

Current Level: 0.5271
Support: 0.5235
Resistance: 0.5290
Last week’s range: 0.5179- 0.5279

FX News

AUD/USD Transfer

The Australian Dollar (AUD), US Dollar (USD) extended moves higher Monday off Fridays Non-Farm Payroll data reaching 0.6640. The green back has lost some of its recent appeal, certainly the Federal Reserve are considering rate cuts sooner rather than later now post jobs data. The number of people employed seasonally adjusted in March dropped with just 175,000 new jobs created instead of the 238,000 predicted. Unemployment also ticked up from 3.8% to 3.9% confirming the labour market is cooling. The pair is sitting just below the triple top resistance level at 0.6645 suggesting a pullback could eventuate depending on the RBA this afternoon. The RBA cash rate should remain unchanged at 4.35% but this is not a dead cert with many suggesting a hike is in store. We think with inflationary pressures still hot they should hold for the 4th straight meeting.

Current Level: 0.6622
Support: 0.6565
Resistance: 0.6650
Last week’s range: 0.6464- 0.6647

FX News

EURO/NZD Transfer

It’s a very quiet week on the Euro (EUR), New Zealand Dollar (NZD) calendar especially midweek when we have French and German holidays. The kiwi rallied late in the week from 0.5510 (1.8150) all the way to 0.5602 (1.7850) to close at this level, Monday’s action has seen the Euro recover slightly to 1.7920 (0.5580) as I write. ECB’s Lane said recently that incoming data has given him more confidence that inflation is returning to the target zone. We believe the kiwi may drift lower over the week.

Current Level: 1.7930
Resistance: 1.8060
Support: 1.7860
Last Weeks Range: 1.7844 – 1.8154

FX News

NZD/EURO Transfer

It’s a very quiet week on the Euro (EUR), New Zealand Dollar (NZD) calendar especially midweek when we have French and German holidays. The kiwi rallied late in the week from 0.5510 (1.8150) all the way to 0.5602 (1.7850) to close at this level, Monday’s action has seen the Euro recover slightly to 1.7920 (0.5580) as I write. ECB’s Lane said recently that incoming data has given him more confidence that inflation is returning to the target zone. We believe the kiwi may drift lower over the week.

Current Level: 0.5577
Support: 0.5540
Resistance: 0.5600
Last week’s range: 0.5508- 0.5604

FX News

GBP/NZD Transfer

This week’s Bank of England (BoE) policy statement and official Cash Rate holds centre stage on the calendar with expectations the central bank will maintain their hold of 5.25%. We are predicting a less hawkish approach from the Bank of England which has possibly given rise to the New Zealand Dollar (NZD) of late. Prices in the pair have come back a long way from mid last week’s 0.4705 (2.1250) level to this morning’s 0.4785 (2.0890) bouncing off the Fib 50% level at 0.4805 (2.0820) of note. With risk sentiment still good we could see a push back into the 48’s this week.

Current Level: 2.0916
Resistance: 2.0970
Support: 2.0820
Last Weeks Range: 2.0825- 2.1258

FX News

NZD/GBP Transfer

This week’s Bank of England (BoE) policy statement and official Cash Rate holds centre stage on the calendar with expectations the central bank will maintain their hold of 5.25%. We are predicting a less hawkish approach from the Bank of England which has possibly given rise to the New Zealand Dollar (NZD) of late. Prices in the pair have come back a long way from mid last week’s 0.4705 (2.1250) level to this morning’s 0.4785 (2.0890) bouncing off the Fib 50% level at 0.4805 (2.0820) of note. With risk sentiment still good we could see a push back into the 48’s this week.

Current Level: 0.4781
Resistance: 0.4805
Support: 0.4770
Last Weeks Range: 0.4705- 0.4800