4 Expert AUD/NZD Forecasts for 2020 That Are All Negative

AUD to NZD Forecasts

Top banks in Australia and New Zealand have a less pessimistic outlook for both the Aussie (AUD) and the Kiwi (NZD) in 2020. This is even though both are commodity currencies and both have been negatively impacted by the coronavirus pandemic.

The reason? A falling US dollar and expectations that global growth will recover, albeit slowly. New Zealand was thought to have the coronavirus under control, but has recently been hit by more outbreaks.

As New Zealand goes into strict lockdowns again, the government has had to delay elections until November. Greater uncertainty will weigh on the NZD. The AUD/NZD recently hit the highest level since October 2018 above 1.09.


Check today's AUDNZD Forex Rate: NZD Currency Converter and Graph.

How else will coronavirus affect global exchange rates?

Uncertainty from the coronavirus pandemic increases volatility in currency markets including the EUR and GBP. Generally, safe-haven currencies like the USD, CHF, and JPY will likely move higher. However, commodity currencies such as the AUD, NZD, CAD and ZAR exchange rates will likely fall. What's happening now is the USD is falling.

This could mean that confidence may be returning for the global economic outlook. However, a faltering recovery from the ongoing threat of coronavirus will continue to create sharp moves in currency crosses like the Australian dollar to New Zealand dollar exchange rate.


AUD to NZD Long Term Forecast Summary

We know what the banks are predicting for the AUDNZD in 2020, but what do they think will happen in 2021? It looks like the AUD/NZD trend is generally expected to rise.

For the latest look at these forecasts, read our AUD to NZD Forecasts for 2021.

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NZD to AUD Bank Forecast

Hand holding Australian dollar in office with computer screen showing foreign exchange table in background

Exchange rates are the relative prices between two currencies and this is why currencies are expressed in pairs. The major Australian bank forecasts are in Australian dollar terms, or the currency pair AUD/NZD. But if you're interested in bank forecasts in New Zealand or "Kiwi" Dollar terms or NZD/AUD you can calculate it.

To convert from NZD to AUD all you need to do is divide 1 by the rate.

For example, if the AUD to NZD exchange rate is 1.1000, then $1.00 Australian dollar is worth NZD $1.10. You divide 1 by 1.1000 to find the NZD/AUD exchange rate of 0.9090.

In this example, $1.00 New Zealand dollar is equivalent to AUD $0.9090 or approximately 91 Australian cents.

We calculated the "Big 4" bank 2020 NZDAUD forecasts for you.

Bank NZDAUD exchange rate forecast

Where to find the best AUD to NZD exchange rates

Compare exchange rates from Australian banks and foreign exchange leaders.

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AUD to NZD Forecast Exchange Rates


Wholesale exchange rate updated

Where to find the best AUDNZD cash rate

In Australia, the best cash rates are found in major cities. We regularly check the main money changers in each CBD to find out the best exchange rates in town.

How to track down the best cash rate

You can either walk around to each money changer, try and call each one and check their rate or you can use our city and suburb guides:

Compare international money transfer exchange rates

Our frequently asked questions

What is the AUDNZD?

Foreign exchange rates are the relative prices between two currencies and this is why currencies are expressed in currency pairs like AUDNZD.

Due to its major commodity exports, the New Zealand Dollar is one of three primary commodity currencies - along with the Australian Dollar (AUD) and Canadian Dollar (CAD). This means commodity prices have a major impact on the NZD, AUD and CAD.

Does the AUDNZD exchange rate change a lot?

Currency crosses like the AUDNZD can be volatile. AUDNZD forecasts can also change quickly.

That’s why it’s popular with traders and why it’s important to consider hedging if you're transferring money overseas. Many companies offer rate alerts online to help you get the best AUDNZD exchange rate.

Is the AUDNZD rising?

Not exactly. The Aussie dollar is relatively less weak than the Kiwi, which makes the rate slightly higher, but both currencies are falling. Here are some key influences:

  • Australian dollar currency (USD): When the AUD rises, the NZD falls. This is because the AUD/NZD is a currency pair. The Australian dollar is falling relatively less than the New Zealand dollar since the beginning of the year.
  • Weak New Zealand economy: The Reserve Bank of New Zealand (RBNZ) cut interest rates earlier this year. The cash rate is at 1.0%, but most investors predict the RBNZ will cut rates by the end of the year. When interest rates are cut, the value of the NZD falls.
  • Weak Chinese economy: Most of New Zealand's exports go to Asia. China accounts for the majority. When China's growth declines, they lower imports from New Zealand, leading to a drop in the NZD. Unfortunately, China only grew 6.2% in the April-June quarter of 2019, almost a 30-year low.
  • Falling commodity prices: New Zealand's biggest exports are dairy, eggs, honey and meat. When milk and other farming goods prices fall, the NZD also falls.
  • US-China trade war: US President Donald Trump is looking to increase tariffs on Chinese imports. This is a key reason why China's growth is slowing. When China's growth slows, China imports less from New Zealand.

How do I forecast the AUD to USD rate?

Investors forecast the movement of the Australian dollar as it relates to the New Zealand dollar, by looking at key influences including:

  • Currencies - Australian dollar, New Zealand dollar and US dollar forecasts
  • Central banks - the Reserve Bank of New Zealand (RBNZ), Reserve Bank of Australia (RBA), the US Federal Reserve (the Fed), European Central Bank (ECB)
  • Interest rates - Investors predict how central bank announcements (like interest rate cuts or hikes) will affect interest rate moves and the relative value of currencies
  • Local governments - Australian Government and Prime Minister Scott Morrisson, New Zealand Government and Prime Minister Jacinda Ardern, US Government and President Trump, UK's Brexit and Prime Minister Boris Johnson
  • New Zealand Economic Data - Economic growth indicators (GDP), Inflation (CPI Core Price Index, PPI Production Price Index), Trade balance (balance between exports and imports of total goods and services)
  • Australian Economic Data - GDP, trade balance and inflation
  • US Economic Data - GDP, trade balance and inflation
  • China (plus Hong Kong, Singapore, and rest of Asia) Economic Data - GDP, trade balance and inflation
  • Commodity Price Forecasts - New Zealand's biggest exports are mostly farming products like dairy, eggs, honey, and meat

Should I trust bank AUDNZD forecasts?

The Australian and New Zealand dollar exchange rates move constantly. So while banks have experts that spend long hours modelling future currency moves, there may be factors that aren't predicted.

Multiple factors influence currency movements that are both local and global. Plus, major bank forecasts are generated with a combination of computer modelling and human influence.

We recommend you don't make your exchange rate decisions based solely on bank forecasts. Instead, take into account your personal objectives, financial situation and needs.

Related: Where You'll Get the Best AUD to NZD Exchange Rates

Where can I find out more about AUDNZD?

You can find out AUDNZD exchange rates right now via the following services:

For more detailed information on where you'll get the best AUD to NZD exchange rates, click here.

By Natalie Robertson Updated March 4th, 2021