The NZD to AUD exchange rate is currently bearish.
Key drivers include:
- Interest rate expectations, with the Reserve Bank of Australia likely to raise rates, while the Reserve Bank of New Zealand is expected to make rate cuts.
- Positive economic forecasts for Australia, strengthening the AUD against the NZD.
- New Zealand’s GDP figures have not notably impacted currency strength, indicating a lack of market confidence in the NZD’s stability.
Near-term, the exchange rate may trade within a stable range, reflecting recent performance near 90-day lows. Fluctuations are likely to remain contained within a modest spectrum, having previously ranged from 0.8615 to 0.8849.
Upside risks could stem from a surprise increase in New Zealand export figures, while downside risks may arise from further hawkish moves by the Reserve Bank of Australia, solidifying the AUD’s upward trajectory.