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Aussie Dollar May Have Peaked Against Kiwi
24 Nov
Summary
- The Australian dollar might have reached its highest point against the New Zealand dollar.
- Analysts anticipate the RBNZ will signal an end to its interest rate easing cycle.
- The AUD/NZD pair could decline towards 1.14 from its current levels.
The Australian dollar's upward trend against its New Zealand counterpart may be coming to an end. Analysts from Bank of New Zealand and National Australia Bank Ltd. suggest that current levels could represent the peak for the AUD/NZD currency pair. This outlook is driven by expectations that the Reserve Bank of New Zealand will signal a halt to its monetary easing cycle.
Following an anticipated 25 basis point interest rate cut by the RBNZ this week, the central bank is expected to adopt a less dovish stance. This shift in monetary policy is a key factor influencing the forecast for the AUD/NZD. If the RBNZ signals an end to rate cuts, it could lead to a significant depreciation of the New Zealand dollar relative to the Australian dollar.
Strategists predict that the AUD/NZD could fall to approximately 1.14. This would mark a decline of almost 1% from recent trading values. The current strength of the Australian dollar against the kiwi has seen it reach near decade-high levels, making this potential shift a notable development in the foreign exchange market.
