AUD/NZD Near Five Year Low at 1.08

Australia’s dollar held near the lowest in more than five years against its New Zealand peer before the bigger nation’s government releases a mid-year review economists say will show a widening budget deficit.

The Aussie traded within one cent of the three-year low of 88.48 U.S. cents reached in August, before Reserve Bank of Australia Governor Glenn Stevens testifies to the House Economic Committee tomorrow. Stevens last week marked out 85 cents as a level he’d prefer. New Zealand’s dollar was supported ahead of half-year economic, fiscal update today.

“Aussie-kiwi will get below NZ$1.08,” said Joseph Capurso, a Sydney-based currency strategist at Commonwealth Bank of Australia. With regard to Steven’s testimony tomorrow, “what would be interesting if there is question asked of the governor on how we came up with the 85 cents that he mentioned the other day.”

Bloomberg

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.