The AUD/NZD pair reached to its lowest level in six weeks, supported by rising New Zealand dollar to its highest level in 5 months against the U.S. dollar. On the other hand, it is forecasted that the Australian dollar won’t continue to record historic levels against the greenback.
The median expected inflation rate in Australia retreat to 3.5% in April from a previous increase of 3.6%, where the RBA wouldn’t have to hike interest rate again during the upcoming period.
The New Zealand economy will get a strong push during the next period from higher exports price that will give support the nation’s currency, fueling inflation rates which may increase the RBNZ’s intervention to curb inflation pressures through rises the benchmark interest rates.
The last day of the week has no data from New Zealand or Australian economies, and the pair’s movements is expected to rely on the market sentiment in addition to the performance of each AUD and NZD against the U.S dollar.
The focus for both currencies will be on Chinese fundamentals. China is Australia’s biggest trading partner and with the GDP expected slightly lower and inflation on the rise more policy tightening expectations from China will dampen the appeal of aussie on weaker demand prospects from China and trigger a wave of pessimism which will favor the dollar over aussie.
Originally posted here
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