Forecasts for AUD to NZD
According to recent exchange rate forecasts and currency market updates, FX analysts and economists are predicting a downward trajectory for the AUD to NZD exchange rate. The Australian dollar (AUD) has been facing downward pressure due to a combination of factors. Major banks in Australia, including NAB and CBA, have lowered their AUD forecasts, expecting it to fall below US60¢ or even US62¢. The incorrect assumptions of improved Chinese demand for iron ore and a softer US dollar have contributed to this bearish outlook.
As a major commodities exporter, changes in commodity prices, trade policies, and political developments have a significant impact on the AUD's value. Additionally, the AUD is considered a proxy for risk appetite in the markets, meaning it tends to fluctuate based on traders' confidence in global economic growth prospects. Any increase in construction and demand for iron ore, particularly in China, would be positive for the AUD.
On the other hand, the New Zealand dollar (NZD) has also been affected by global risk-off sentiment and the hawkish stance of the US Federal Reserve. The NZD has weakened against the US dollar by 20% in 2022. It is worth noting that the NZD/USD and AUD/USD pairs often move in the same direction due to their geographical proximity and dependence on commodity markets.
Considering the recent AUDNZD price data, with the exchange rate currently at 1.0777 (just below its 3-month average), the currency pair has been trading in a relatively stable range of 1.8% from 1.0725 to 1.0918.
In summary, FX analysts expect the AUD to NZD exchange rate to decline further in the short term due to downgraded forecasts for the Aussie dollar by major banks, as well as the influence of factors such as commodity prices, trade policies, and political developments. The NZD's performance is also influenced by global risk-off sentiment and the US Federal Reserve's monetary policy stance.
