According to Goldman Sachs economists the New Zealand Dollar looks set to soar to its highest level against its Australian relation in several years over the next 12 months. The ‘Kiwi’ could reach as high as 90 Australian cents.
The Goldman Sachs economists say they have been forecasting an “inflection point” in Australian and NZ growth prospects for some time “and it is now under way”.
“This is founded on diverging investment cycles, NZ terms of trade outperformance and strong NZ house price growth. After Australia had weathered the aftermath of 2008’s global financial crisis well, its economy was now facing ‘greater headwinds’ than New Zealand’s. In fact, for the first time in a decade, domestic demand growth in NZ (both in 2013 and 2014) is forecast to outpace Australia’s” they said.
Today the New Zealand Dollar is little changed against the US Dollar after it slid by 5.4% on an improving picture for the US economy. The continuing strength and popularity of the ‘Greenback’ has seen the American currency make gains against the majority of its peers. Traders have been positive about the world’s reserve currency due to growing expectations the Federal Reserve will start unwinding its massive stimulus programme as early as this year.
“There’s a bit of consolidation going on after what’s been a pretty big run up in the US dollar over the past few weeks,” said Dan Bell, a currency strategist based in Auckland. “I wouldn’t be surprised to see the ‘Kiwi’ Dollar push up.”
Current New Zealand Dollar (NZD) Exchange Rates:
The New Zealand Dollar/US Dollar Exchange Rate is currently in the region of: 0.8112
The New Zealand Dollar /Euro Exchange Rate is currently in the region of: 0.6283
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5374
The New Zealand Dollar /Australian Dollar Exchange Rate is currently in the region of: 0.8390
The US Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.2326
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.8605
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.5914
The Australian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.1918
The Canadian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.1909
(Correct as of 10:10 GMT)
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