It’s great news for Kiwis but not such good news for Aussies 15



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For the first time in history, it is likely that the Australian dollar will fall to parity with the New Zealand dollar in the coming months, signalling a significant economic shift for both countries.

According to the Daily Mail, ANZ economist Daniel Been has co-authored a report with fellow economist Sam Tuck,that suggests the Australian dollar has a 57 per cent chance of falling to parity with the New Zealand dollar during 2015. This will be the first time since both currencies were floated that this has happened.

Last Thursday the Australian dollar hit a record low of 103.01 New Zealand cents and, speaking about the future, Mr Been predicted that the momentum suggests that parity is “more likely than not”.

Although parity isn’t likely to last long, this means that the relationship between our two countries is likely to shift based on the export markets.

Every winter, Aussies head across to New Zealand to take advantage of the colder climate and cheap ski season but if the trip across doesn’t have a financial benefit then it’s likely that the Australian snow season in the Snowy Mountains will pick up and New Zealand will lose that tourism. Also, Aussies will find themselves paying more for New Zealand products like wine from Marlborough.

It’s an interesting relationship between Australia and New Zealand and we won’t be surprised if the effects of this will last for quite some time to come.

Tell us, have you holidayed or lived in both Australia and New Zealand?

Starts at 60 Writers

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  1. Yes lived in both countries when I was 16 nz money ten shillings there’s only worth seven shillings sixpence roughly nz one dollar oz seventy five cents nz s worth more in 1956

  2. Born in nz, live here. In early 1988 it was nearly par, friends son rolled over his money early in the year as he knew he was coming over on a rugby trip and to go to expo. He was 13. By time his folks turned theirs over it was way down, lol.

  3. Not the first time, surely. Im pretty sure that in the late ’60’s the NZ dollar was higher than the Aussie …

    1 REPLY
    • It was higher in NZ in the sixties. One pound worth 20 shillings here and 25 shillings in NZ if I remember correctly.

  4. The Chinese may no longer use New Zealand for repackaging its food for sale in Australia under the “Product of New Zealand” banner.

  5. Many products including hardwood come via NZ toAust because of slack regulations passed on to us just not acceptable!

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