Question:

We are going to Aussie for a week and need to exchange some cash to take.

Should we do this before or after the reserve banks announcement this Thursday?

Answer:

It's unlikely to make a huge difference one way or the other -- but the expected cut in the OCR is putting downward pressure on the Kiwi dollar -- which, depending on the size of the cut, will likely cause a further drop in demand come Thursday.

The RBNZ announcement is likely to narrow the gap between trans-Tasman interest rates, so a lower NZD/AUD may be in store.

Best bet: change your money before the OCR announcement.


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