Buyers steer AUD/NZD upwards, raising the pair near 1.0990 and then stabilizing at 1.0970.
Firms in New Zealand expect a deterioration of the economic outlook according to the NZIER Survey of Business Opinion.
RBA minutes from the June meeting confirmed a hawkish stance from the RBA.
The AUD/NZD buyers took the initiative on Tuesday. The steady stance by the Reserve Bank of Australia (RBA) seen in the latest minutes has raised market speculation for an interest rate hike in the August meeting, providing impetus to the pair's upward movement. The gloomy outlook in New Zealand is also pushing the pair upwards.
In New Zealand, the market is focused on the Q2 NZIER Survey of Business Opinion (QSBO) released this Tuesday. The survey showed that a great portion of the firm's survey expects a slowdown in the New Zealand economy over the coming year. Regarding the Reserve Bank of New Zealand, contrary to market expectations for a cut in November, the bank has its first rate cut planned for Q3 2025. However, if the economy shows more signs of weakening, the bank might consider earlier reductions.
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