BER Currency News

BER Home/s

  1. Home
  2. Currency News
  3. Get Your New Zealand Dollars This Year Rather Than Next, Suggests Bank’s Latest FX Forecasts

Get Your New Zealand Dollars This Year Rather Than Next, Suggests Bank’s Latest FX Forecasts

Yesterday, ABN AMRO released their latest FX forecasts for 2017 and 2018. There were few notable revisions, nor was there much in the way of standout predictions, with the exception of one – NZD/USD to rise to 0.80 in 2018.

The ‘kiwi’ hasn’t traded at or above 0.80 against the US dollar since October 2014. A move to that level from its current price of 0.6993 (as of 02:00 GMT, April-21) would mark a 14.4% rise – a large amount if you’re planning on buying property or investing in New Zealand, or planning holidays there.

New Zealand dollar appreciation will likely be driven by expectations for interest rate hikes, especially given yesterday’s inflation data which showed consumer prices in New Zealand rising at their fastest rate since 2011. Central banks raise interest rates in order to keep inflation under control, and higher rates attract deposits and investments from overseas – something which necessitates the conversion of foreign currency into New Zealand dollars (buying of NZD). As the demand for New Zealand currency increases, so will its price.

With this in mind, readers in need of New Zealand dollars this year or next should consider bringing forward purchases of the currency to take advantage of what are, according to ABN AMRO, good value exchange rates.

Readers can use BestExchangeRates.com’s comparison calculators for NZD travel money and NZD foreign currency transfers to find the cheapest providers of New Zealand dollars.

 

Aussie Up, Yen Down on Thursday as US Treasury Secretary Puts Reflation Theme Back in Focus



AUD/JPY 3 Month Chart

“Major tax reform” is coming “very soon”, said US Treasury Secretary Steven Mnuchin on Thursday.

Mnuchin’s comments – given to an audience at the Institute of International Finance in Washington – have worked to reignite the reflation story that was so prevalent in November and December, but which has fizzled out in 2017.

As a consequence, the carry trade was back on yesterday, with the Australian dollar posting across-the-board gains and the yen weakening.

The Australian dollar-to-Japanese yen exchange rate had fallen in fifteen of the past twenty-two trading days to lows at 81.59 as of Wednesday’s New York close. Those had been new five-month lows in the rate, driven by a steep fall in the price of iron ore, a flight to safety amid heightened geopolitical risk, and a reduction in market expectations for the scale and likelihood of Donald Trump’s reflating policies.

At Thursday’s New York close, AUD/JPY had managed to claw back some of its recent losses, ending the session at 82.27, up 0.8% on the day.

Against the US dollar, the Australian dollar gained 0.4% and the yen weakened by the same amount. Rates for AUD/USD and USD/JPY are now at 0.7526 and 109.31 respectively.

 

Joel Wright Author: Joel Wright

Joel has been involved in the markets for the past 10 years. During that time he’s worked in market analysis teams in London, in the financial technology sector in Singapore – working mostly with automated trading tools and algorithms – and most recently he’s been planning FX risk hedging for an SME in Bangkok. Joel has a first-class honours degree in Financial Services and currently writes about foreign exchange for several global businesses.

You can get in touch with Joel via email here or via the contact page.
Please note that the opinions of our authors are their own and do not reflect the opinion of BestExchangeRates and should not be taken as a reference to buy or sell any financial product. Full Disclaimer

BER logo BestExchangeRates - We make it Easy to Compare Exchange Rates & Fees of Banks and Currency Exchange & Payment Providers


Level 2, 50 Bridge St, Sydney NSW 2000.

Disclaimer | Copyright | Privacy Statement


DISCLAIMER

BestExchangeRates.com is an information only service. By browsing on the website, using our comparison tools or FX provider referral service, you are asking BestExchangeRates to provide you with information about currency exchange products & services from multiple financial institutions.

We will try to show you a range of products & services in response to your request for information. The search results do not include all providers and may not compare all features relevant to you. In giving you product information we are not making any suggestion or recommendation to you about a particular product.

If you decide to conduct foreign exchange you will deal directly with a financial institution, and not with BestExchangeRates. Rates and product information should be confirmed with the relevant financial institution, see our terms of use for further details.

BestExchangeRates may receive fees or other benefits in relation to activity on the BestExchangeRates website. BestExchangeRates may receive remuneration for vendor referral links. Please note that the opinions of our authors are their own and do not reflect the opinion of BestExchangeRates and should not be taken as a reference to buy or sell any financial product.

Read our Full Terms of Service



COPYRIGHT

This website and its contents are the copyright of BEST EXCHANGE RATES PTY LTD © 2009-17. All rights reserved.

Any redistribution or reproduction of part or all of the contents in any form is prohibited other than the following. You may print or download contents to a local hard disk for your personal and non-commercial use only. You may copy some extracts only to individual third parties for their personal use, but only if you acknowledge the website as the source of the material.

You may not, except with our express written permission, distribute or commercially exploit the content. You may not transmit it or store it on any other website or other form of electronic retrieval system.

For more details or request distribution right please contacxt us here.