The Australian Dollar to New Zealand Dollar (AUD/NZD) exchange rate softened by around -0.27% on Tuesday morning. This is due to positive trade balance data supporting the New Zealand Dollar. The Australian Dollar, meanwhile, is struggling with a lack of data to influence changes. Further ‘Aussie’ (AUD) declination can be attributed to a sluggish commodities market which could possibly offset the support for a 2015 rate hike.
The Australian Dollar to New Zealand Dollar exchange rate is currently trending in the region of 1.0490.
Yesterday…
The Australian Dollar to New Zealand Dollar (AUD/NZD) exchange rate is trending within a narrow range on Monday. This is the result of quiet markets during the Christmas period and a lack of influential domestic data to drive changes.
The Australian Dollar to New Zealand Dollar exchange rate is currently trending in the region of 1.0498.
Australian Dollar (AUD) Softens on Iron Ore Outlook
Although volatility has been minimal during the Christmas period, the Australian Dollar has softened against many of its major peers. This is likely to be the result of futures traders cutting iron ore estimates next year by 33%.
‘The current market oversupply is expected to prevail through the start of 2015 in response to a likely ongoing cyclical downturn in China’s housing sector,’ a Roubini Global Economics LLC says report said. ‘More of China’s production is expected to exit the market, particularly over the northern winter. A longer period of even lower iron ore prices may be required than previously expected to push supply out of the market.’
The Australian Dollar to New Zealand Dollar exchange rate fell to a low today of 1.0483.
New Zealand Dollar (NZD) Ticks Lower on Consumer Confidence
As traders await domestic data due late this evening, the New Zealand Dollar ticked lower against many of its most traded currency competitors. The general declination is in response to Sunday’s Consumer Confidence Data, which dropped from 116.7 to 114.8.
Australian Dollar to New Zealand Dollar (AUD/NZD) Exchange Rate Forecast to Soften
Given that iron ore prices are weighing heavily on the Australian Dollar and New Zealand Trade Balance is forecast to improve, the Australian Dollar to New Zealand Dollar exchange rate has the potential to soften.
The Australian Dollar to New Zealand Dollar exchange rate reached a high today of 1.0559.
