The New Zealand and Australian Dollars have both strengthened against the majority of their peers as monetary stimulus in the USA and Japan boosted the value of the Oceanic nation’s assets.
“The reality is that Japan is doing something special, so the impact on the ‘Kiwi’ index has got to continue to be positive on that, “Anyone searching for yield and happy to pick up the currency gain would not look past the kiwi or the Aussie,” said Alex Sinton, senior dealer at ANZ New Zealand.
As Japan’s massive monetary easing programme and bond buying takes effect the Australian Dollar soared to a 4 ½ year high against the Yen whilst the ‘Kiwi’ also took flight and soared against the currency.
“It’s QE everywhere,” said Hans Kunnen, the chief economist in Sydney at St. George Bank Ltd. “We’re not engaging in that practice. So the Aussie dollar should strengthen against the Euro,US Dollar and yen simply on the basis of the interest-rate structure and a relative lack of supply.”
The currencies are set to continue to strengthen after US Federal Reserve Chairman Ben Bernanke said that expansionary monetary policies in the world’s largest economies are ‘mutually constructive’, he also showed no hint of easing the Feds quantitative easing after revealing that the USA’s recent economic performance has not met his expectations and with signs that the US economy is exhibiting its regular pattern of a spring slowdown there is little sign that Bernanke will ease the Feds bond purchases any time soon.
Current AUD and NZD Exchange Rates
The Australian Dollar to Euro exchange rate is trading at 0.8001
The Australian Dollar to US Dollar (AUD/USD) exchange rate is trading at 1.0420
The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate is trading at 0.6826
The Australian Dollar to New Zealand Dollar (AUD/NZD) exchange rate is trading at 1.2285
The New Zealand Dollar to Euro (NZD/EUR) exchange rate is trading at 0.6513
The New Zealand Dollar to Pound Sterling (NZD/GBP) exchange rate is trading at 0.5556
The New Zealand Dollar to US Dollar (NZD/USD) exchange rate is trading at 0.8481
The New Zealand Dollar to Australian Dollar (NZD/AUD) exchange rate is trading at 0.8139
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