UPDATED 10.32AM: Our economy looks better than Australia's at the moment, as we approach parity with their dollar.

It's the first time we've surpassed 98 cents to the Australian dollar, since the currency was floated in 1985.

Since late October, the Kiwi currency has gained more than 10% against the Australian.

BNZ chief economist Tony Alexander says New Zealand's economy is doing well, while the Australian economy has taken multiple hits recently.

"They've got a lot of problems with the Federal and State deficits, shrinking manufacturing sector, retailing problems, and of course the massive decline in iron ore and coal prices in the last 3-4 years."

"Our economy is very well supported by the construction industry, which is in Christchurch, investment in the dairying sector, the construction occurring up in Auckland as well."

Alexander believes there's a better than even chance it will hit parity.

"There's a seventy-five percent chance that we do versus a twenty-five percent chance we don't."

"We could easily come in tomorrow morning and be above ninety-nine cents from just above ninety-eight at the moment."

ASB chief economist Nick Tuffley says we could see it happen sooner than we think.

"In terms of where our forecasts are sitting we actually have it hitting parity in the second half of this year, but the way things are going the risk looks like it could be in the short term."