Tag Archives: New Zealand dollar

The Australian and New Zealand dollar are among the most expensive currencies. The former looks especially vulnerable to a mild pullback.At their November monetary meeting, both the Reserve Bank of Australia (RBA) and the Reserve Bank of New Zealand (RBNZ) kept their official cash rates unchanged at, respectively, 1.50% and 1.75%.The RBA sounded relatively cautious given low wage growth and high household debt. The RBNZ was more upbeat in light of the potential for more fiscal stimulus under...

The difference in macro outlooks means prospects are brightening for the New Zealand dollar against its Australian equivalent.At their February monetary meeting, both the Reserve Bank of Australia (RBA) and the Reserve Bank of New Zealand (RBNZ) kept their official cash rates unchanged at 1.50% and 1.75% respectively.However, given our view that New Zealand’s economic fundamentals are better than Australia’s, the temporary weakness of the New Zealand dollar that stemmed from the forward...