The pair remains within the mid-range of its recent fluctuation, signaling a stable but cautious upward bias as traders assess broader market dynamics. Key technical indicators suggest a mixed picture, with shorter-term signals supporting the current trend while longer-term averages hint at potential headwinds. The future outlook for AUD/NZD remains cautiously optimistic, with expectations of moderate growth. Historical price movements show a stable trend, with occasional spikes due to economic announcements. In the short term (1 to 6 months), the pair is likely to remain within the current range, influenced by economic conditions and trade relations.

The AUD/NZD pair is experiencing potential volatility due to the Reserve Bank of Australia’s (RBA) next moves. Monthly and yearly forecasts provide reference points for medium to longer-term planning. Please note that daily forecasts are subject to change based on market volatility and news events. This short-term forecast can be a useful reference for immediate transaction planning.

  • If the 200-day moving average of the AUD/NZD pair is successfully broken and retested, it is reasonable to anticipate the rate could rise to 1.12 by the end of the year.
  • Key technical indicators suggest a mixed picture, with shorter-term signals supporting the current trend while longer-term averages hint at potential headwinds.
  • The OECD advises keeping interest rates high to control inflation, which could impact the pair’s value.
  • As founder of Gold Predictors, he leads a team providing advanced market analytics, quantitative research, and refined precious metals trading strategies.
  • Monthly and yearly forecasts provide reference points for medium to longer-term planning.

The resulting yield differential could lift the AUD/NZD rate to 1.12 from 1.09 now. The AUD has underperformed against most of its developed world peers as the Reserve Bank of Australia has lifted rates at an easier pace than other central banks, widening the differential in interest rates. The Australian dollar’s performance has largely been framed against a weakening global economy and central bank action in lifting rates. Providing access to our stories should not be construed as investment advice or a solicitation to buy or sell any security or product, or to engage in or refrain from engaging in any transaction by Forbes Advisor Australia. In comparing various financial products and services, we are unable to compare every provider in the market so our rankings do not constitute a comprehensive review of a particular sector.

USD/JPY Technical Analysis – Descending Broadening Wedge

For example, a 12-day simple moving average is a sum of the closing prices over the last 12 days which is then divided by 12. Macroeconomical and political events play an important role in the forex markets, as they can have a significant influence on exchange rates. If the pair’s price moves above any of these averages, it is generally seen as a bullish sign for stock. Conversely, a drop below an important moving average is usually interpreted as a negative forecast for the market. Moving averages (MA) are a popular indicator in all financial markets, designed to smooth price action over a certain amount of time. They are a lagging indicator which means they are influenced by historical price activity.

Extended yearly projections fp markets review for the AUD to NZD exchange rate, offering a speculative outlook over the next fifty years. The Reserve Bank of New Zealand issues it, and it is divided into 100 cents. New Zealand has a diverse developed economy with strong farming (especially dairy products and meat), manufacturing, services, and tourism based on its natural beauty. The value of the NZD is influenced by prices for its farm exports, inflation, and global economic factors.

AUD/NZD Historical Rate Chart

  • The Canadian employment data might also influence market sentiment, although its direct impact on AUD/NZD is limited.
  • Our AUD/NZD forecasts use algorithms and historical data to provide indicative outlooks.
  • While Australia is currently experiencing favourable conditions for its minerals-heavy export basket, New Zealand’s agri-focused export performance has not been as good because of lacklustre conditions in the Chinese market.
  • Investors should consider current market sentiment and technical indicators when making decisions.
  • The Australian dollar (AUD) and New Zealand dollar (NZD) exchange rate has been a topic of interest for investors in recent times.

In the table below you can find two types of moving averages, simple moving average (SMA) and exponential moving average (EMA). If the 200-day moving average of the AUD/NZD pair is successfully broken and retested, it is reasonable to anticipate the rate could rise to 1.12 by the end of the year. Our AUD/NZD forecasts use algorithms and historical data to provide indicative outlooks. However, the Forex market is volatile and influenced by many unpredictable factors.

The AUD/NZD exchange rate is set by continuous trading in the global foreign exchange (Forex) market. Track currency trends, analyze historical charts, and explore monthly and yearly predictions for smarter trading and financial planning. As the name suggests, a moving average provides the average closing price for a forex pair over a selected time frame, which is divided into a number of periods of the same length.

About Australian Dollar / New Zealand Dollar

One key factor determining the AUD/NZD rate over a longer term will be the inevitable end to central bank tightening globally. Another factor to consider is the impact of the technical recession in New Zealand. A deteriorating domestic economy could prompt global investors to seek more stable assets, leading to a weaker Kiwi dollar.

The New Zealand dollar has been among the weakest performing major currencies in 2023, with the persistent downtrend attributable to several key factors. Rising investor concerns about the risk to global growth have also played a role in the prolonged weak performance of the local currency, given the potential risk to Australia’s exports. However, global equities and other risk-assets have staged a recovery in recent months, allowing the AUD to make up some ground. The pair are correlated given the similar position of both countries as commodity exporters, and typically trade in a similar way against other global currencies. Both are also suited to “risk-on” trade, thanks to each country’s high exposure to commodities exports to China and a sensitivity to global growth. To the extent any recommendations or statements of opinion or fact made in a story may constitute financial advice, they constitute general information and not personal financial advice in any form.

The CoinCodex Cryptocurrency Price Tracker

Any signal from the RBA regarding rate hikes could further boost the Aussie dollar’s value. The aggressive interest rate moves by the RBA have pushed the AUD higher against its kiwi counterpart. The current yield differential between the AUD and NZD looks set to shrink, which would be to the detriment of the kiwi dollar. Most analysts expect the Australian dollar to strengthen against the NZD over the next few months due to the RBA’s continued rate hikes, with the resulting yield differential potentially lifting the AUD/NZD rate to 1.12 from 1.09 now. Investors should keep an eye on the RBA’s meetings and interest rate decisions, as they can have a significant impact on the AUD/NZD exchange rate.

Investors rushed back into risk assets, betting that the worst might be behind us. USD/JPY ticks higher following the previous day’s modest pullback from over a one-month peak amid the upbeat market mood, which tends to undermine the safe-haven JPY. The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

These scenarios highlight the importance of market conditions in determining investment outcomes. Investors should consider current market sentiment and technical indicators when making decisions. Practical steps include monitoring economic news, setting stop-loss orders, and diversifying investments to mitigate risks. Recently, AUD/NZD has shown a stable trend with minor fluctuations, reflecting the balance between the Australian and New Zealand economies. The economic calendar highlights China’s trade data, which could indirectly affect AUD/NZD etoro review due to Australia’s trade ties with China.

invest in AUD/NZD Forex pair?

The pair’s volatility is expected to increase if the RBA decides to raise interest rates. The RBA’s decision to keep interest rates low has kept the AUD/NZD pair stable, with the AUD trading at around powertrend 1.10 NZD. This stability is expected to continue in the near term, as the RBA is likely to maintain its accommodative monetary policy.

Long-term forecasts (1 to 5 years) suggest gradual appreciation, contingent on economic recovery and stable trade policies. External factors such as geopolitical issues or major economic shifts could significantly impact the pair’s trajectory. Overall, the outlook is stable, with potential for growth if economic conditions remain favorable. Short-term moving averages, including the 10-day Simple Moving Average (SMA) and 10-day Exponential Moving Average (EMA), align with the broader buy signals, further reinforcing the pair’s current bullish stance. However, the 100-day and 200-day SMAs suggest a more cautious long-term outlook, reflecting underlying selling pressure that could limit further upside.

With that said, let’s break down the currency pair’s performance on a more granular level, focusing on each month separately. “Longer term, other central banks including the RBA will need to call a halt to the rate hiking cycle, similar to where the RBNZ is now. This would help the NZD to appreciate against other currencies on narrowing yield outlooks,” said KCM’s Waterer.