Known as the ‘Kiwi’, the NZD trades freely and is considered a stable currency. Another important factor would be an improvement in trade and economic conditions. While Australia is currently experiencing favourable conditions for its minerals-heavy export basket, New Zealand’s agri-focused export performance has not been as good because of lacklustre conditions in the Chinese market. “The aggressive interest rate moves by the RBA has pushed the AUD higher against its kiwi counterpart,” said Tim Waterer, chief market analyst at forex broker, KCM Trade. An immediate reason has been the New Zealand’s central bank unexpectedly signaling in May that no further policy tightening will be needed to tame inflation, after it lifted the cash rate to a steep 5.5%.

What is the current Australian Dollar (AUD) to New Zealand Dollar (NZD) exchange rate?

The New Zealand dollar has been among the weakest performing major currencies in 2023, with the persistent downtrend attributable to several key factors. Rising investor concerns about the risk to global growth have also played a role in the prolonged weak performance of the local currency, given the potential risk to Australia’s exports. However, global equities and other risk-assets have staged a recovery in recent months, allowing the AUD to make up some ground. The pair are correlated given the similar position of both countries as commodity exporters, and typically trade in a similar way against other global currencies. Both are also suited to “risk-on” trade, thanks to each country’s high exposure to commodities exports to China and a sensitivity to global growth. To the extent any recommendations or statements of opinion or fact made in a story may constitute financial advice, they constitute general information and not personal financial advice in any form.

Gold price ticks lower amid positive risk tone; downside seems cushioned

The pair remains within the mid-range of its recent fluctuation, signaling a stable but cautious upward bias as traders assess broader market dynamics. Key technical indicators suggest a mixed picture, with shorter-term signals supporting the current trend while longer-term averages hint at potential headwinds. The future outlook for AUD/NZD remains cautiously optimistic, with expectations of moderate growth. Historical price movements show a stable trend, with occasional spikes due to economic announcements. In the short term (1 to 6 months), the pair is likely to remain within the current range, influenced by economic conditions and trade relations.

The RBNZ’s decision to end its rate hikes could also make the New Zealand dollar less attractive to foreign investors, contributing to its decline against the Australian dollar. The RBA’s continued rate hikes, or at least not ruling them out, will create a yield differential that could lift the AUD/NZD rate to 1.12. The Reserve Bank of New Zealand’s (RBNZ) surprise announcement that it was cmc markets review done with rate hikes completely reversed the momentum. This trend was underscored after the Reserve Bank of Australia (RBA) lifted its cash rate in Australia on June 6.

The resulting yield differential could lift the AUD/NZD rate to 1.12 from 1.09 now. The AUD has underperformed against most of its developed world peers as the Reserve Bank of Australia has lifted rates at an easier pace than other central banks, widening the differential in interest rates. The Australian dollar’s performance has largely been framed against a weakening global economy and central bank action in lifting rates. Providing access to our stories should not be construed as investment advice or a solicitation to buy or sell any security or product, or to engage in or refrain from engaging in any transaction by Forbes Advisor Australia. In comparing various financial products and services, we are unable to compare every provider in the market so our rankings do not constitute a comprehensive review of a particular sector.

One key factor determining the AUD/NZD rate over a longer term will be the inevitable end lmfx review to central bank tightening globally. Another factor to consider is the impact of the technical recession in New Zealand. A deteriorating domestic economy could prompt global investors to seek more stable assets, leading to a weaker Kiwi dollar.

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• Please note that daily forecasts are subject to change based on market volatility and news events.
• Investors expect the Fed to hold rates steady, but markets are watching Jerome Powell’s tone.
• These longer-term projections provide a reference for strategic financial planning, keeping in mind that forecast accuracy typically decreases over extended periods.

Analysts expect the AUD/NZD rate to rise to 1.12 in the short term, largely due to the RBA’s hawkish-for-longer stance, which will boost the appeal of the Australian dollar. These longer-term projections provide a reference for strategic financial planning, keeping in mind that forecast accuracy typically decreases over extended periods. View the projected month-by-month exchange rate forecast for AUD to NZD covering the upcoming two years. Reference tables showing common amount conversions between AUD and NZD based on the current exchange rate. The value of the Australian Dollar often depends on the global prices of natural resources that Australia sells, like iron ore and coal. Since Australia has a large and stable economy, the AUD is traded widely around the world.

Current Rate

Investors rushed back into risk assets, betting that the worst might be behind us. USD/JPY ticks higher following the previous day’s modest pullback from over a one-month peak amid the upbeat market mood, which tends to undermine the safe-haven JPY. The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

AUD/NZD Price Forecast Based on Technical Analysis

The AUD/NZD pair is experiencing potential volatility due to the Reserve Bank of Australia’s (RBA) next moves. Monthly and yearly forecasts provide reference points for medium to longer-term planning. Please note that daily forecasts are subject to change based on market volatility and news events. This short-term forecast can be a useful reference for immediate transaction planning.

Investors expect the Fed to hold rates steady, but markets are watching Jerome Powell’s tone. Any hint of caution or dovishness could weigh on the US dollar, but hawkishness would pressure the Australian Dollar further. Convert AUD to LKR with our easy-to-use currency converter and explore historical exchange rates for informed decision-making.

• Conversely, a drop below an important moving average is usually interpreted as a negative forecast for the market.
• This short-term forecast can be a useful reference for immediate transaction planning.
• Despite a sharp rise in June, the AUD/NZD pair is currently trading midway through the range.
• The RBA’s decision to keep interest rates low has kept the AUD/NZD pair stable, with the AUD trading at around 1.10 NZD.
• AUD/NZD is currently a buy as the exchange rate is forecasted to increase by 0.12% in the next 24 hours.

The pair’s volatility is expected to increase if the RBA decides to raise interest rates. The RBA’s decision to keep interest rates low has kept the AUD/NZD pair stable, coinbase exchange review with the AUD trading at around 1.10 NZD. This stability is expected to continue in the near term, as the RBA is likely to maintain its accommodative monetary policy.

For example, a 12-day simple moving average is a sum of the closing prices over the last 12 days which is then divided by 12. Macroeconomical and political events play an important role in the forex markets, as they can have a significant influence on exchange rates. If the pair’s price moves above any of these averages, it is generally seen as a bullish sign for stock. Conversely, a drop below an important moving average is usually interpreted as a negative forecast for the market. Moving averages (MA) are a popular indicator in all financial markets, designed to smooth price action over a certain amount of time. They are a lagging indicator which means they are influenced by historical price activity.

Recessionary conditions could also prompt the RBNZ to bring forward its timeline for cutting rates, making the currency less attractive to foreign investors. In the short term, analysts expect the AUD/NZD rate to rise to 1.12, largely because the RBA’s hawkish-for-longer stance will boost the appeal of the Australian dollar. That variation has been evident over the last year, with the combination bouncing between 1.05 and 1.15 over that period. Despite a sharp rise in June, the AUD/NZD pair is currently trading midway through the range. AUD/USD looks to build on the previous day’s strong move up to a fresh weekly top amid a positive risk tone, which underpins the Aussie. Furthermore, Tuesday’s softer US CPI report keeps the USD bulls on the defensive and validates the positive outlook for the pair amid the US-China trade deal optimism, ahead of the Australian Wage Price Index.

Today’s Live AUD to NZD Exchange Rate

Any signal from the RBA regarding rate hikes could further boost the Aussie dollar’s value. The aggressive interest rate moves by the RBA have pushed the AUD higher against its kiwi counterpart. The current yield differential between the AUD and NZD looks set to shrink, which would be to the detriment of the kiwi dollar. Most analysts expect the Australian dollar to strengthen against the NZD over the next few months due to the RBA’s continued rate hikes, with the resulting yield differential potentially lifting the AUD/NZD rate to 1.12 from 1.09 now. Investors should keep an eye on the RBA’s meetings and interest rate decisions, as they can have a significant impact on the AUD/NZD exchange rate.