April 3 (Bloomberg) -- Investors should bet the Australian dollar will gain against New Zealand’s as the bigger nation’s central bank has been more effective in lowering borrowing costs, Royal Bank of Canada said.

Investors should also purchase Norway’s krone against Sweden’s currency for similar reasons, the bank said.

“The Reserve Bank of Australia and Norges Bank are much further ahead of the curve in loosening policy than their regional counterparts,” wrote Adam Cole, global head of currency strategy in London at Royal Bank of Canada.

Australia’s currency slipped 1.1 percent to NZ$1.2248 as of 5:34 p.m. in Sydney from NZ$1.2380 late in New York yesterday. The Swedish krona traded at 1.2266 per Norwegian krone from 1.2239 yesterday.

To contact the reporter on this story: Candice Zachariahs in Sydney at czachariahs2@bloomberg.net

Last Updated: April 3, 2009 02:51 EDT