Forecasts for AUD to NZD
Recent forecasts for the AUD to NZD exchange rate indicate a period of challenging conditions for both currencies. Following U.S. President Donald Trump's announcement of a 10% tariff on imports from both Australia and New Zealand, analysts suggest that these trade measures are likely to exert further pressure on the Australian dollar (AUD). The Reserve Bank of Australia’s (RBA) dovish rate cut has also added to the bearish sentiment, causing the AUD to trade within a narrow range. Analysts predict that today’s publication of Australia’s latest PMIs may highlight a modest slowdown in private sector growth, which could contribute to further losses for the AUD.
The New Zealand dollar (NZD) has mirrored the weakness seen in the AUD. Market experts note that the strong positive correlation between the two currencies means that news affecting one often impacts the other. With similar trade tariff announcements impacting both nations, the NZD is experiencing downward pressure alongside the AUD. Analysts are also monitoring New Zealand's latest trade figures, as these could influence the direction of the NZD in the near term.
In the context of recent price data, the AUD to NZD rate at 1.0852 remains just below its three-month average, reflecting a stable trading range of 4.0% from 1.0671 to 1.1096. Economists highlight that both currencies have become increasingly subject to global risk sentiment, given their status as commodity currencies, which may lead to increased volatility. As such, fluctuations in commodity prices, especially linked to Australia and New Zealand’s trade relationships, will continue to dictate the AUD/NZD exchange rate moving forward.
Market watchers advise keeping an eye on broader economic indicators and geopolitical developments, particularly those surrounding U.S. trade policy and its implications for commodity demand, as these factors will be crucial in shaping the performance of the AUD and NZD in the upcoming weeks.
