AUD/NZD Bulls Defend Key Support Level Amid Consolidation

The AUD/NZD pair has been experiencing a strong run higher over the last couple of weeks, but some analysts are suggesting that it's now just consolidation at this point.

The policy divergence between the RBA and the RBNZ remains the main driver here. The Australian side has turned increasingly hawkish as RBA Deputy Governor Andrew Hauser has emphasized persistent inflation risk, making additional tightening credible for Australia.

Hauser's recent rhetoric has reinforced the perception that the RBA has relatively little tolerance for inflation remaining above target. This is supportive for the Australian dollar, which is being forced to price a higher-for-longer situation going forward.