Annual Forecast for AUD/NZD (2021): More Bullish Runs Ahead


The reserve banks of Australia (RBA) and New Zealand (RBNZ) have both published slightly pessimistic outlooks for 2021, which in turn, would affect the Aussie and Kiwi.

The AUD/NZD, which represents the value of the Australian dollar in terms of the Kiwi, is rounding off the year higher than it began amid plummeting global equity and energy prices. That said, the Aussie had a healthier year compared to the NZD.

Meanwhile, both the RBA and the RBNZ have cut their interest rates this year. The RBA has cut its short-term target from +0.75% to +0.25%, while the New Zealand bank cut its rates from +1.00% to +0.25%.

The AUD is the riskier of both currencies, which means it tends to benefit more from positive risk sentiment and suffers more in negative risk markets than the NZD. However, the factor that would likely keep supporting the AUD in 2021 is the size of the Australian economy.

In 2018, New Zealand’s GDP was at US$205 billion, while Australia’s figures came in at a whopping US$1.43 trillion—about seven times larger than that of New Zealand’s. That said, a larger economy typically intensifies FX swings—which provides the underlying currency with immense liquidity and demand—compared to a smaller one.

With all that in mind, it remains somewhat unclear what the future holds for both currencies individually, considering the risks surrounding the commodities, energy, and equity markets, amid the COVID-19 pandemic. Nonetheless, 2021 looks more favorable for the AUD over the NZD.

AUDNZD – Weekly Chart

AUD/NZD Value Forecast — 2021

AUD/NZD 2021 Bias: Bullish

Supply Levels: 1.1000, 1.1200, and 1.1300

Demand Levels: 1.0550, 1.0400, and 1.0200

Despite having a choppy year, the AUD/NZD is rounding off better than it started the year. Already, the prospects for 2021 (from a technical perspective) seems very bullish for the pair, considering that it bounced off the base of our ascending channel in early December and is now on its way to the top of the channel.

That said, our highest expectation for the AUD/NZD in 2021 stands at 1.1300 (a six-year-strong resistance), while our lowest price expectation for the new year is 1.0000 (the lowest-ever recorded price).

Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit

Highly volatile unregulated investment products. No EU investor protection.

  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
  • Zero commissions and no bank fees on transactions
  • Around the clock service with support in 14 languages
$100 Min Deposit
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$200 Min Deposit
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
Share with other traders!

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.