New Zealand Dollar to Australian Dollar Exchange Rate

How does the New Zealand dollar trade against the Australian dollar historically?

Australia is New Zealand’s largest trading partner, meaning the performance of the New Zealand dollar (and the New Zealand economy in general) is closely linked to that of the Australian dollar.

Because of this close relationship, the NZD to AUD exchange rate remains one of the most stable when compared to other currency pairs. It is often only the interest rate differential between the two countries that dictates the prevailing NZD to AUD exchange rate.

So far this year, the NZD to AUD exchange rate has shifted between a low of 0.906 on 28 January and a high of 0.951 on 12 April.

As mentioned above, the NZD/AUD exchange rate is historically a very stable one.

However, both currencies are heavily dependent on the movement of the US dollar and the influence of China’s economic activity. Both the United States and China are major trading partners of New Zealand and Australia.

As both the AUD and NZD are most actively traded against the USD, the relative strength of the US economy may play a role in the AUD/NZD exchange rate. The balance of trade between Australia and New Zealand may also influence currency fluctuations.

Other factors affecting the trans-Tasman exchange rate include the monetary policies and market conditions of both countries.

How much is traded between these currencies?

The NZD is the 10th most traded currency in the world. According to the Triennial Central Bank Survey of foreign exchange, an average of US$104 billion of NZD, or 2.1 percent of the global foreign exchange market, is traded daily.

The NZD punches well above its weight in terms of New Zealand’s relative share of population and global GDP.

According to the same survey the Aussie dollar has a 7 percent share of the global foreign exchange market. An average of US$348 billion of AUD is traded daily, making it the fifth-highest traded currency.