The Australian Dollar to New Zealand Dollar exchange rate has been close during Tuesday’s trading session, mainly on account of a collapse in previously supportive iron ore prices.
In New Zealand, the NZD has been in low demand, on account of authorities coming to terms with the latest disruptions and destruction caused by the earlier earthquake.
Australian Dollar Declines against New Zealand Dollar after Iron Ore Cost Drop
While it was able to rally on Monday, the Australian Dollar has trimmed its gains against the New Zealand Dollar today, owing to the cost of iron ore dropping off in a surprise turn of events.
Other AUD-limiting news has included the Reserve Bank of Australia (RBA) meeting minutes being released; these have showed an uncertainty among RBA officials about how households will be affected by income shifts in the near-term.
In New Zealand, the aftermath of the latest earthquake has kept demand for the NZD down.
Domestic news has actually been highly positive recently, with the Global Dairy Trade price index rising by 4.5%, though future indexes may decline owing to the impact of the quake on dairy farms in the area.
Australian Dollar to New Zealand Dollar Drop Expected if Unemployment Rise is Recorded
Given the latest RBA uncertainties over the jobs market, the coming Thursday’s unemployment rate figure is set to have an amplified impact among AUD investors.
As it stands, the morning’s data release is predicted to show stagnation at 5.6%, but any upwards deviation from this figure could see the Australian Dollar slump in response.
In more positive news, while part time unemployment is predicted to fall, both the overall and full time employment changes are expected to rise.
Future New Zealand Dollar Movement to be Influenced by Earthquake Recovery Efforts
With the next major New Zealand domestic data some way off, the next source of positivity for the NZD is likely to come from good news from authorities regarding post-quake repairs.
Outside of such announcements, the New Zealand Dollar is set to be further influenced by the coming Tuesday’s retail sales stats, as well as the October trade balance figure on November 25th.
Retail sales in Q3 are forecast to fall on the month and the year, while the current trade deficit is forecast to fall from -1436m to -805m.
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 1.06 and the New Zealand Dollar Australian Dollar (NZD AUD) exchange rate was trending in the region of 0.93.