AUD to NZD Forecasts

The New Zealand dollar usually moves with the Australian dollar, however, in August, it trailed its commodity currency peer. New Zealand consumer spending in the second quarter dropped by nearly 15%, a record decline and a sign of the damage lockdown measures have had on consumer spending. Although early indicators suggested a strong rebound through Q3, lockdowns in Auckland have added pressure on struggling economy and GDP estimates. In the past, the Kiwi has struggled to extend beyond 66 US cents. However, USD weakness and a surge in positive sentiment has helped fuel demand for risk assets and pulled the NZD higher. The Kiwi has the potential to extend gains and push toward 68 US cents in the coming weeks, closing in on the gap with the AUD. September Currency Update