Limited Impact of Mining News Leaves AUD/NZD Exchange Rate Stable
The Australian Dollar to New Zealand Dollar exchange rate has held close to opening levels today, with a lack of high-impact data preventing major movement.
The latest Australian news has been positive but has failed to trigger an AUD rally – a taskforce has been launched to support Australia’s extensive resources sector.
Federal Resources Minister Matt Canavan has touted the plan as a way of ensuring the industry’s continued strength in the years ahead, stating;
‘The mining boom is not over. Mining is as important as it has ever been and its importance to the Australian economy is only likely to increase’.
New Zealand Dollar to Australian Dollar Exchange Rate Static after Mixed Business Confidence Report
The New Zealand Dollar has made minimal gains against the Australian Dollar today, but has been prevented from fully rallying because of business uncertainty.
The ANZ business confidence reading for February has shown that 20% of respondents hold a pessimistic outlook on the economy going ahead.
Commenting on the mixture of data on offer, ANZ Bank New Zealand Chief Economist Sharon Zollner said;
‘The economy is certainly not crawling, but it’s hardly gliding along either. This far into the race it is naturally hard to accelerate.
But while sectors of the economy such as housing and construction may be tiring, record-high terms of trade and a positive outlook for incomes are providing helpful buoyancy.
The ongoing cooling in the housing market seems to have hit the retail sector anew – after a brief renaissance the sector is the second-weakest after agriculture.
The services and construction sectors are the most confident, which matches up with our take on where in the cycle the economy is at’.
Australian Dollar to New Zealand Dollar Exchange Rate Forecast: Will NZ Permits Trigger Further AUD/NZD Losses?
The Australian Dollar to New Zealand Dollar exchange rate could endure further losses in the near-future, when New Zealand’s building permits data is released.
The reading measures changes to quantities of permits granted in February; growth of 0.2% was reported in January.
Higher numbers of building permits suggest that there will be greater construction activity in New Zealand in the coming months, which could provide an economic boost.
Looking further ahead, the week starting on 2nd April will bring a greater spread of high-impact AU and NZ economic data.
The first major Australian announcement will be 3rd April’s Reserve Bank of Australia (RBA) interest rate decision.
As with previous months, the RBA is not predicted to adjust interest rates from 1.5%, but the Australian central bank could still influence the AUD with statements from policymakers.
If officials suggest that conditions in the Australian jobs market could improve considerably in the coming months, the Australian Dollar could rally over hopes for a near-term interest rate hike.
New Zealand’s first economic data next week will consist of the global dairy trade price index stats out on 4th April.
If the reading shows major growth in global dairy prices then the New Zealand Dollar could see an early rally against the Australian Dollar.