Australian Dollar to New Zealand Dollar Exchange Rate Sheds Most of Last Week’s Gains
A lack of strong Australian data in recent sessions has given investors little reason to buy the Australian Dollar to New Zealand Dollar (AUD/NZD) exchange rate do far this week and the pair has slipped.
Last week saw AUD/NZD climb slightly from 1.0732 to 1.0781, but despite a brief recovery attempt on Monday the pair hit a weekly low of 1.0732 during Tuesday’s European session.
The pair may rebound from those lows but the Australian Dollar (AUD) lacks the drive to sustain any gains.
This is because recent Australian ecostats have continued to indicate that the Reserve Bank of Australia (RBA) is unlikely to take a more hawkish shift on Australia’s economic outlook any time soon.
Tuesday saw the publication of Australia’s February business confidence survey results from the NAB, which met expectations and slipped to 9. The previous figure was revised down from 12 to 11, which put some pressure on the ‘Aussie’.
Australia’s January home loans results were slightly disappointing too, only improving from -2.3% to -1.1% rather than the forecast -1%. Investment lending for homes rose from -2.6% to 1.1% in January.
New Zealand Dollar (NZD) Exchange Rates Firm in Anticipation of NZ Growth Data
On top of this, New Zealand Dollar (NZD) trade has been resilient and this has kept pressure on AUD/NZD.
While investors are hesitant to sell the New Zealand Dollar ahead of this week’s key datasets, they are hesitant to buy the currency too much either. Essentially, AUD/NZD is likely to remain range bound until influential data is published.
NZD investors are highly anticipating New Zealand currency account data, due Wednesday, and NZ Gross Domestic Product (GDP) results from Q4 2017 on Thursday.
Monday’s NZ food inflation results from February slowed from 0.8% to 0.1%, but this was ultimately too low influence to impact AUD/NZD significantly.
Australian Dollar to New Zealand Dollar Forecast: Australian Confidence and NZ Growth in Focus
The Australian Dollar to New Zealand Dollar (AUD/NZD) exchange rate could see more significant direction in trade towards the end of the week, as investors are still highly anticipating upcoming dataset publications.
Australia’s March consumer confidence survey stats from Westpac due Wednesday and New Zealand’s Q4 Gross Domestic Product (GDP) results due on Thursday are likely to be the most influential datasets for AUD/NZD trade in the coming sessions.
In particular, New Zealand’s Q4 growth stats are likely to drive New Zealand Dollar movement if they surprise investors.
NZ growth is currently forecast to have risen from 0.6% to 0.7% quarter-on-quarter and from 2.7% to 3.1% year-on-year.
If it beats expectations, the Australian Dollar to New Zealand Dollar exchange rate is forecast to fall towards the end of the week.
AUD/NZD investors may also pay attention to New Zealand current account stats on Wednesday and Australian consumer inflation expectations data on Thursday.
Lastly, the Reserve Bank of Australia’s (RBA) latest bulletin will be published on Thursday too.