AUD/NZD Pulls Back Ahead of Key Market Events

The AUD/NZD cross retreated on Monday after reaching its highest level since July 9. Despite advancing for four consecutive sessions, the pair stalled near 1.2100 as traders became cautious ahead of key market events.

The Reserve Bank of Australia's hawkish stance continues to support the Australian Dollar, but China's PMI data offered limited gains for the AUD/NZD cross. The Manufacturing PMI improved to 49.8 in August, above consensus expectations, but remained below the expansion threshold.

Australia's Q2 GDP release and the Reserve Bank of New Zealand's policy decision on Wednesday are expected to drive market movements. Market participants anticipate a rate hike by the RBNZ in September and signal further tightening before year-end.