AUD NZD

AUDNZD Currency pair flag

Latest AUD NZD Analysis and Forecasts

US Dollar rebounds with Stocks also higher

USD
The US Dollar finally halted its decline last week, which was unexpected after disappointing US economic data. The Dollar Index (DXY) rose 0.7% to close the week up at 97.83.

EUR
The Euro turned over and remained under a lot of pressure before the ECB press conference. However, there was no real news in Mario Draghi’s last meeting as the ECB chairman and we now welcome Christene Laragarde as chairwoman. She will have a tough time on her hands following weak eurozone economic data. In light of this, EUR/USD finished the week trading below the all-important 1.11 mark.

GBP
The Pound was incredibly volatile again last week, however, the likelihood of a No-Deal Brexit is still considerably reduced, but the risk still remains as a No-Deal is still not completely off the table. Overall, the Pound gave back some of its recent gains and finished the week -1.2%, however traders are looking more towards the upside.

JPY
Another fairly quiet week on the Yen front, we saw a slight retreat but no real impulsive moves.

AUD & NZD
A fairly negative week for both pairs, which both fell around 0.7% on the week versus  the USD, mostly driven by a stronger US Dollar.

EQUITIES
Stocks showed more strength and it is still clear to us that the risk is for more upside gains. Fairly positive US-China trade talks and signs of progress from the EU/UK boosted equities higher. The S&P 500 finished the week hitting new all-time highs rising over 1.1% to 3021, the DAX gained 1.8% to close at 12886, and the FTSE100 finished 2.2% higher at around 7324.

The Week Ahead
The week ahead will have traders’ eyes focused on the all-important EU/UK and US/China deals once again. With the October 31st Brexit deadline quickly approaching and the most likely outcome being a further extension, yet again we will likely see a very volatile week ahead for both GBP and EUR.

On the macroeconomic front we have CPI releases from the Eurozone, Germany, Australia, Japan, and Switzerland. As well as this we have the important interest rate decisions from the US and Canada, ending the week with the US Nonfarm Payroll release Friday. Until next week, Happy Trading!


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Other major currency pairs


BUY - rate is expected to increase, i.e. the first currency gains value against the second currency.
SELL - rate is expected to go down, i.e. the first currency is expected to lose value against the second currency.


AUD/NZD – Live and Historical Rates

While the Australian Dollar is one of the major currencies, the New Zealand Dollar (also known as Kiwi Dollar) is not. The pair reflects the close economic ties between the two countries. The above chart illustrates how many NZD it takes to purchase one AUD.

The AUD

The Australian Dollar is an excellent diversification instrument for forex traders, on account of its exposure to Asian Markets. Australia’s largest trading partners are Japan, South Korea, India and China. The AUD replaced the Australian Pound in 1966, becoming the floating currency of the Commonwealth of Australia in 1983, after being taken off the British Pound peg. Besides Australia proper, the AUD also serves as currency for Christmas Island, Cocos Islands, as well as the island states of Nauru, Tuvalu and Kiribati.

Due to minimal government interference and attractive interest rates, the AUD is one of the darlings of forex traders. In 2011, it accounted for 7.6% of the global daily forex turn over, and it has become the 5th most traded currency behind the USD, EUR, JPY and GBP.

The NZD

The New Zealand dollar is a small currency, used besides New Zealand proper in Tokelau, Niue, the Cook Islands, the Pitcairn Islands and the Ross Dependency. Introduced in 1967, replacing the New Zealand Pound, the Kiwi Dollar was originally pegged to the USD. It became a floating currency in 1985. It is currently one of the 10 most traded currencies in the world, accounting for some 2% of the daily global forex turn over. Being a small currency, the value of the NZD is heavily influenced by the international interest rates.

AUDNZD Analysis

While the AUD is most exposed to the commodity markets, the NZD is mostly influenced by the food market and agriculture. USD fluctuation has a more obvious impact on the NZD than the AUD.

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