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AUD to NZD Exchange Rate Tussles as Positive News Boosts Both Currencies

aud to nzd exchange rate
With positive developments in both Australia and New Zealand lending support to the neighbouring nation’s currencies, the AUD/NZD exchange rate battled for supremacy overnight.

Firstly, the New Zealand Dollar (NZD) broadly strengthened in response to the Reserve Bank of New Zealand’s decision to introduce an interest rate increase.

The RBNZ is the first developed nation to raise rates.

Although the central bank also attempted to talk down the ‘Kiwi’, the commodity-driven currency surged after the key benchmark rate was hiked to 2.75 per cent.

However, the Australian Dollar (AUD) later recouped losses and advanced on its New Zealand counterpart as Aussie employment figures surprised to the upside.

The Australian economy added 47,300 jobs last month, over three times the 15,000 employment gain forecast by economists.

Full time employment in the nation soared while the participation rate edged up to 64.8 per cent.

In light of the recent disappointing Australian data, including this week’s dip in consumer confidence, today’s result was particularly welcome.

Bloomberg News quoted industry expert Annette Beacher as saying; ‘It’s a very strong jobs report, driven by full-time employment. It’s a welcome relief after a soggy week. Once the rest of the world sees the number, we’ll be back to 91 [US cents].’

However, while the Australian Dollar was able to overtake the ‘Kiwi’ after the data was published, concerning industrial production and retail sales figures for China (Australia’s largest trading partner) put some pressure on the South Pacific assets.

China’s industrial output advanced by just 8.6 per cent year-on-year while retail sales climbed by 11.8 per cent.

With the weekend rapidly approaching, additional movement in the AUD/NZD pairing could be inspired by New Zealand’s performance of manufacturing index and China’s foreign direct investment report.

Current Australian Dollar Exchange Rates:

Currency Currency Rate

Correct as of 11:00 GMT