The Australian Dollar has declined heavily against the New Zealand Dollar during trading today, mainly in response to a recent gloomy outlook from the OECD.
New Zealand Dollar demand has remained high on the whole; this has come on NZIER optimism about the nation’s ability to cope with the costs of the latest dramatic earthquake.
Australian Dollar Appeal Damaged by OECD Expectations, NZD Up on NZIER Hopes
The Australian Dollar and New Zealand Dollar have both been shifted by forecasts today, with the AUD proving worse off in the pairing.
The OECD has recently released its quarterly outlook report, which has triggered concern among a number of Australian Dollar investors to the extent of weakening the AUD considerably.
The key figures have been for Australian growth to slip below 3% and remain there until 2018, which has put a dampener on hopes of rapid expansion within the economy.
New Zealand’s good news has come from the New Zealand Institute of Economic Research (NZIER), which has forecast that the nation will be able to ‘comfortably absorb’ the costs of recovery and repair after the Kaikoura Earthquake that struck in mid-November.
Australian Dollar New Zealand Dollar Rate Predicted to Recover if Permits Stats Rise as Expected
In the case of the Australian Dollar, a rise against the New Zealand Dollar may take place under the right circumstances; right now, these are dependent on the late morning’s October building permits figures.
As it stands, a considerable rise is expected in the field, from -8.7% to 2%.
Looking further ahead, Thursday morning will bring the AiG manufacturing index for November, which is set to increase from 50.9 to 51.4.
New Zealand Dollar Australian Dollar Outlook Positive on ANZ Confidence Forecasts
The NZD AUD exchange rate may improve further in the near-term, given the latest forecasts that have been made for noon’s ANZ business confidence figure for November. At the time of writing, this was forecast to rise slightly, from 24.5 to 25.1 points.
Also out in the near-term will be the Reserve Bank of New Zealand (RBNZ) financial stability report, which could further enhance the NZD’s appeal if it points towards a smooth passage for the economy into 2017.
Recent Interbank Exchange Rates
At the time of writing, the Australian Dollar New Zealand Dollar (AUD NZD) exchange rate was trending in the region of 1.04 and the New Zealand Dollar Australian Dollar (NZD AUD) exchange rate was trending in the region of 0.95.