AUD/NZD SEES SLIGHT UPTICK AHEAD OF RBNZ DECISION, HAWKISH RBA
- AUD/NZD saw a mild increase in Tuesday's session but cleared most of its gains.
- RBNZ decision comes up later in the Asian session with a hold priced in.
- The RBA maintains its hawkish tone, promoting a more favorable outlook for the Aussie.
After a climb to the highest level since early May, the AUD/NZD buyers have cleared some gains and the pair faces some consolidation. The market awaits the Reserve Bank of New Zealand (RBNZ) decision later on Tuesday where the Official Cash Rate (OCR) is expected to be maintained at 5.50%.
Despite markets betting on a 60% probability of a rate hike by the end of the year, as suggested in the RBNZ’s May rate path projection, the disinflationary process brought on by New Zealand’s sluggish growth outlook leans the market towards an early rate cut in October, with a November cut fully priced in. In that sense, the Monetary Policy Statement for any possible insights will be closely looked at.
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