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In 2019, the Reserve Bank of New Zealand has already cut interests rate three times this year with the most recent cut being in August.  But three months ago, the Reserve Bank of New Zealand (RBNZ) surprised the Markets when it decided to keeping interest rates on hold.  The Reserve Bank of New Zealand said it was leaving the rates at 1% as economic developments didn’t warrant a rate cut.

For most of January the New Zealand Dollar has been rising and the uptick in the New Zealand economy warrants once again that the RBNZ avoid further interest rate cuts at least in the first half of 2020.

Although Australia and New Zealand both rely on China to import their goods, Australia is singing a different tune.  The minutes from the Reserve Bank of Australia (RBA) meeting were released in November cite regarding monetary policy, the (RBA) held its bearish bias, suggesting that they are ready to cut rates further if necessary.  

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And with the bushfires burning millions of acres, AMP Capital's head economist Shane Oliver predicts the fires will shave about 0.4% points off Australia's economic growth rate this year.

And because to the dynamics that the two countries are dealing with, the Australian dollar is depreciating against the New Zealand dollar to the point, were we might see parity in the near future. 

<blockquote>

The New Zealand dollar has never reached parity with its Australian peer. That may change this year.

The Aussie has slumped about 5% against the kiwi after touching a one-year high in November as monetary policy in the two nations started to diverge. Events this week have the potential to reinforce the trend.

Markets are pricing in at least one interest-rate cut by the Reserve Bank of Australia this year, despite an improvement in the country’s inflation and unemployment rates. Some banks are even predicting two reductions.

In contrast, expectations for additional easing from the Reserve Bank of New Zealand have fallen sharply since it surprised investors in November by keeping rates unchanged. Markets are pricing in just 62% chance of one cut by RBNZ this year.

</blockquote>

<center><a href="https://finance.yahoo.com/news/aussie-dollar-slump-against-kiwi-190000308.html">Source</a></center>

So will the AUD/NZD hit parity this year, lets go to the charts to find out?

Monthly Chart (Curve Time Frame) - monthly supply is 1.14000 at and monthly demand is at 1.01500.

![](https://cdn.steemitimages.com/DQmemtXi83cHNW7beoXkf3z2kZ1Kz7BLCfftP1mTn5MsCBy/image.png)


Weekly Chart (Trend Time Frame) – the trend sideways with downside momentum.

![](https://cdn.steemitimages.com/DQmRNn8WSZRopuhcUzDHCNpsuLyBLeMKtsfr3hZf2caXGYf/image.png)

Weekly Chart (Entry Time Frame) – at the moment there is not clear entry point, but I anticipate that all changing mid-week after the RBA announces whether or not they are cutting rates again.

![](https://cdn.steemitimages.com/DQmb84WycEQoVhxJVbsLuteqdgdvJkWqr54LFt1aayZxDdD/image.png)

This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.

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