The Australian Dollar has declined slightly against the New Zealand Dollar today, following a pessimistic assessment of the Australian wages situation.
Australian Dollar Ticks Down on Wage Growth Worries
After a mixed statement from Reserve Bank of Australia (RBA) Governor Philip Lowe, the Australian Dollar has slipped against the New Zealand Dollar.
This poor performance follows Lowe’s assertion that low wage growth is a major risk to the national economy.
While Lowe stated that the next interest rate movement would be up, the lack of a timetable on this rate hike left traders wanting.
New Zealand Dollar Advances on Quiet Day of Trading
Mainly by virtue of other currencies being less attractive, the New Zealand Dollar has advanced against the Australian Dollar today.
The rise to an exchange rate of 0.9261 has come as traders reluctantly buy up the NZD due to a lack of other options.
Fears about a nuclear conflict between the US and North Korea have devalued the US Dollar, while a recent RBA statement has also pushed the Australian Dollar down.
AUD NZD Exchange Rate Set for Turbulence on RBA Minutes
After the recent shortage of Australian and New Zealand economic news, the coming week will relieve this current drought.
Starting with Australia, the first major announcement will be Tuesday’s Reserve Bank of Australia (RBA) minutes for August.
Ever since the RBA left interest rates on hold earlier in the month, the central bank has repeatedly issued dovish predictions for the near-term Australian economy.
The minutes may not provide any statements contrary to this cautious outlook, so the Australian Dollar could decline against the New Zealand Dollar early in the week.
Further ahead, the AUD could fluctuate further on Thursday’s July jobs data. This will consist of the employment change, as well as the participation rate reading and the unemployment rate result.
Based on forecasts, the Australian Dollar could appreciate on the news. This is because while participation and unemployment are expected to stay unchanged, an 8.9k rise in employed persons is anticipated.
Imminent NZ news will come out before next week’s AU data, starting off with Monday’s services PMI and retail sales stats. Traders may be primed for a New Zealand Dollar decline, as services activity and retail sales are both set to slow.
The other big news will be Wednesday’s Global Dairy Trade price index announcement. Covering global changes in dairy prices, this may inspire a New Zealand Dollar advance if it shows rising costs.
The price of dairy fell by -1.6% on the previous index reading, so a strong positive figure could reverse any present negative sentiment.
Recent Interbank AUD NZD Exchange Rates
At the time of writing, the Australian Dollar to New Zealand Dollar (AUD NZD) exchange rate was trading at 1.0792 and the New Zealand Dollar to Australian Dollar (NZD AUD) exchange rate was trading at 0.9262.