It’s up, up and away
Aussies cash in on top dollar with NZ holidays
THE emergence of Labour leader Jacinda Ardern in the upcoming New Zealand election has provided a bonus for Aussie tourists heading across the ditch.
The potential of an upset at the polls has led to the strongest exchange rate in more than 12 months.
Over the past month the Aussie dollar has risen almost 4 per cent against its Kiwi counterpart and is now trading at $NZ1.108, after hitting $NZ1.114 on Thursday.
The New Zealand dollar has lost traction against the Aussie as uncertainty over whether Ms Ardern will be victorious on September 23 over sitting Prime Minister Bill English ramps up.
ANZ chief economist Cameron Bagrie said a combination of factors had led to the fall in the New Zealand currency.
“The Kiwi dollar has come under a bit of pressure because the election is looking a lot more uncertain now than what the market was thinking three to four weeks ago,” he said.
“But the Australian dollar, too, has had a bit of a tail wind. What we’ve seen in the past two weeks is the Australian dollar has performed well.
“Commodities and economic data has been a bit better than what was expected, which has shown a strength in the labour market, and the RBA has also been a bit more enthused.”
Meanwhile Queensland travel group Flight Centre said recent demand for New Zealand holidays had been strong, with the benefit of a stronger exchange rate for Australian tourists meaning they are more likely to purchase additional daytrips, excursions or activities.
“New Zealand is always the No. 1 outbound destination from Australia,” a spokesperson said.
There is now a double whammy of benefits being cheap airfares and a strong Aussie dollar.