AUD/NZD Hits Fresh High as Traders Eye Aussie GDP and RBNZ Rate Decision
The Australian Dollar (AUD) has been holding its own against the New Zealand Dollar (NZD), reaching a fresh high since July 9 on Monday. The AUD/NZD cross turned positive for the fourth straight day, with spot prices trading just above the 1.2100 mark.
However, traders seem hesitant to build on the momentum ahead of key data releases this week, including Australia's June-quarter Gross Domestic Product (GDP) report and the Reserve Bank of New Zealand's (RBNZ) monetary policy decision.
The RBNZ is expected to increase the OCR by 25 basis points in September, with traders also expecting a signal for further hikes by year-end. This has acted as a tailwind for the NZD and capped the AUD/NZD pair.
Meanwhile, the Reserve Bank of Australia's (RBA) hawkish outlook continues to draw support for the AUD, with RBA Governor Michele Bullock emphasizing that a rate cut is not on the agenda and additional tightening remains 'quite possible' if inflation fails to cool as projected.