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January 9th 2009

NZD, AUD Down in 2009?

While the Australian Dollar and New Zealand Kiwi technically started 2009 in the black, most analysts believe that both currencies will continue their record declines that began in 2008. All economic indicators continue to point downward, due to the adverse conditions created by the worldwide recession. The economies of Australia and New Zealand are extremely dependent on exports of raw materials and dairy products, respectively. Unfortunately, due to a contraction in demand and a decline in speculation, the prices for both types of commodities appears unlikely to erase even a fraction of the losses suffered last year. The death blow into the heart of both currencies will likely be delivered by their respective Central Banks, which are expected to make additional interest rate cuts. This will further erode the rate differential with the US/Japan, that previously signaled the currencies as attractive investments. Bloomberg News reports:

The average forecast is for the currency [AUD] to reach a low of 62 cents in the first quarter before recovering to 66 cents by the end of 2009. New Zealand’s dollar…will bottom at 52 U.S. cents in the second quarter and recover to 55 cents by the end of the year…

Read More: Australian, New Zealand Dollars Complete Worst Year on Record

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Posted by Adam Kritzer | in Australian Dollar, Economic Indicators | 4 Comments »

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4 Comments of “NZD, AUD Down in 2009?”

  1. Anthony Says:

    I hope you’re right. I think a weaker dollar is a good thing in this climate. With the USA economy stretched to breaking point, I think the lower dollar may just help sales and keep us ticking along… just!

  2. Chris Says:

    update July 2009.
    The article says that “New Zealand’s dollar…will bottom at 52 U.S. cents in the second quarter and recover to 55 cents by the end of the year…”

    This shows just how difficult it became to predict things. Mid July 2009, the NZD sits strong at 0.62 – 0.63USD, it bottomed at 0.49 in early March; I am really looking forward to a weaker NZD but I do not see it happening this year…

  3. marketivaus Says:

    info about new sealand dollar gift me experience for nexts a good trading

  4. marketivaus Says:

    infomasi tentang nzd memberi saya inspirasi trading yang lebih baik lagi

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