NZ dollar hits 3-year low against Aussie as rate gap widens, economies diverge

Traders say there’s more downside to come. (Image: Getty)

Fri, 26 Sep 2025

The New Zealand dollar is hovering at a three-year low against the Aussie as the fortunes of the two countries continue to diverge.Kiwibank economists point to NZ’s “relative underperformance”, noting that compared to the June quarter last year, the economy has shrunk a further 0.6%. That compared to 1.8% growth in Australia, they said. “With further rate cuts priced in domestically following our shocking GDP numbers, the growing spread between Kiwi and Aussie rates has already seen the NZD/AUD break below previous...

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