NZD to AUD Exchange Rate Hits 13-Year Low: Impact on Kiwi Travellers

The New Zealand dollar has fallen to a 13-year low against the Australian dollar, significantly increasing the cost for New Zealand residents traveling to Australia. As of April 9, 2026, NZ$1 is equivalent to A$0.82, a decline from the A$0.92 exchange rate recorded in April 2025.

Infometrics chief forecaster Gareth Kiernan stated that this shift means expenses for those traveling to Australia will cost approximately 9% more in New Zealand dollar terms than they would have if the trip had been taken a year prior.

Drivers of the Currency Decline

The decline of the New Zealand dollar against the Australian currency since mid-2025 is attributed to two primary economic factors that have increased Australia’s appeal to international investors.

• New Zealand’s economic performance has been weaker compared to that of Australia.
• Interest rates in New Zealand have remained steady since November 2025, while Australia has raised its interest rates twice during 2026.

Beyond the Australian dollar, the New Zealand currency has faced broader volatility. In November 2025, the Kiwi reached multi-year lows against several currencies, including the British pound and the Chinese yuan. It also hit a seven-month low against the US dollar, trading just below 56 US cents.

ANZ currency strategists noted that a lack of risk appetite and struggles within Bitcoin contributed to severe consequences for both the New Zealand and Australian currencies. A stronger US dollar was driven by falling expectations of further interest rate cuts by the Federal Reserve and investors seeking the safety of the greenback.

Impact on Tourism and Consumer Behavior

The combination of a weaker exchange rate, higher airfare prices and increased fuel costs is expected to reduce the number of New Zealanders traveling to Australia for holidays.

Julie White, the chief executive officer of the Travel Agents Association NZ, indicated that while New Zealanders will continue to travel, their habits are likely to change. White noted that travelers are adjusting their spending by downgrading specific elements of their trips.

We tend to see people adjusting their spend by downgrading elements like cabin class or accommodation, and being a bit more considered with daily spending on things like retail and hospitality. But importantly, they still go.

Julie White, Travel Agents Association NZ CEO

White also highlighted that uncertainty surrounding the conflict in Iran is a critical unknown factor. She suggested that the duration of this conflict and its subsequent impact on the broader cost of living could influence traveler behavior more than the exchange rate alone.

Broader Economic Implications

While a weaker New Zealand dollar increases the cost of imports and overseas travel, it can provide other economic offsets. A lower dollar typically results in better returns for exporters and makes New Zealand a more attractive destination for international tourists, as their currency gains more purchasing power within the country.

Other global factors have also influenced currency markets, including the decline of the Japanese yen following the appointment of Prime Minister Takaichi in October 2025 and subsequent discussions regarding a major stimulus package.