In short
- AUD/NZD has remained above 1.07 after reaching 1.0826 this month - the highest rate since November 2018
- The AUD/USD hit a 4-week high against the US dollar
- Comments from RBA governor help the Australian dollar higher
AUD to NZD exchange rates
| Time | Open | High | Low |
|---|---|---|---|
| Today | 1.0721 | ||
| Yesterday | 1.0738 | 1.0738 | 1.0738 |
| In the last week | 1.0754 | 1.0697 | 1.0792 |
| In the 3 months | 1.0411 | 1.0826 | 1.0318 |
How it happened
The Australian dollar moved higher over the weekend as comments from RBA Governor Lowe talked down the chance of future rate cuts.
Speaking in Washington on Friday last week, the head of the RBA remained optimistic about the Australian economy. He covered a range of topics from the trade wars to what he called "diminishing returns from monetary easing".
In the end, markets took the speech as a confirmation that there would not be an interest rate cut in November. As a result, the Australian dollar moved higher against most currencies on Friday and continued higher when markets opened on Monday.
I don’t think it’s the right assumption to make that we're going to have a lot more work to do to get inflation back to target and growth back to trend, I think it's quite probable that we'll see a return to trend growth over the next year, which will be good.
– Reserve Bank Governor Dr Philip Lowe
Up Next
This week, it's all about interest rates. Central banks in China and the EU meet and decide on the official interest rates for 2 of the largest economies in the world.
In Australia, there is very little market news out.
| Country | Day | Event |
|---|---|---|
| China | Monday | PBoC Interest Rate Decision |
| Australia | Wednesday | PMI Manufacturing data |
| Eurozone | Thursday | Interest Rate Decision |
