The Australian Dollar New Zealand Dollar (AUD NZD) exchange rate remained relatively stable on Thursday as they both gained as the US Dollar (USD) was weakened by Donald Trump’s first press conference since becoming president elect.
AUD NZD Bolstered by Trump Outbursts
Riskier currencies like the Australian Dollar and New Zealand Dollar were strengthened yesterday by the weakening of the US Dollar as Trump -who was forced to go on the defensive over allegations over his dealings with Russia and his bizarre night-time activities- lashed out at the media.
Investors had hoped they would hear more about the incoming President’s new policies and plans for trade, but were instead treated to a media circus as Trump as unleashed a barrage of abuse at news outlets over the handling of an unverified story of alleged sexual misconduct in a Moscow hotel room.
Slight Rise in Iron Ore Helps Strengthen Australian Dollar
The ‘Aussie’ was also strengthened by the further rise in iron ore prices as they continued to trend at over $80 a tonne, defying analysts who predict that the current prices are unsustainable.
Observers are beginning to question the fundamentals that are driving the rise as China begins to implement its rebar production cuts announced last year, something that should cause iron ore prices to fall as demand for the raw material needed to produce steel eases.
AUD NZD Forecast: ‘Aussie’ May Rise Following Chinese Trade Balance
The AUD NZD exchange rate may rise on Friday following the release of China’s latest Trade Balance figures which are predicted to show that China’s trade surplus rose from $44.6bn to $46.5bn in December, boosting the ‘Aussie’ thanks to China accounting for around 34% of Australian exports.
Meanwhile investors in the New Zealand Dollar will be hoping that prices rise in next week’s Global Dairy Auction following a disappointing result at the start of 2017 as prices for New Zealand’s largest export fell 3.9%, with the ‘Kiwi’ likely to plummet if the downtrend continues.
Current Interbank Exchange Rates
At the time of writing the AUD NZD exchange rate was trending around 1.05 and the NZD AUD exchange rate was trending around 0.94