While the New Zealand dollar has lost value this week because of the Fonterra contamination crisis, Craigs Investment Partners broker Peter McIntyre expected the kiwi to appreciate and the Australian dollar to fall once forex dealers had read and digested the statement from Reserve Bank of Australia governor Glen Stevens.
''Money markets always look forward and I think they will see there are further opportunities for rate cuts in Australia, below the current record low.''
The Australian dollar has depreciated by around 15% since early April, although it remained at a high level, Mr McIntyre said.
Mr Stevens said in a statement that in Australia, the economy had been growing below trend over the past year.
That was expected to continue in the near term as the economy adjusted to lower levels of mining investment.
The easing in monetary policy over the past 18 months had supported interest-sensitive spending and asset values, and further effects could be expected over time.
The pace of borrowing had remained relatively subdued, although recently there had been signs of increased demand for finance by households.
