AUD/NZD Rally Halted as RBA Rate Call Looms

The Australian Dollar (AUD) has paused its rally against the New Zealand Dollar (NZD), hovering just below the 1.2400 level after retreating from last week's 13-year high of 1.2491.

Markets are anticipating a 25 basis-point hike from the Reserve Bank of Australia, which would lift the policy rate to 4.6%. This move is expected on Tuesday, but its impact on AUD/NZD is uncertain.

The technical picture also suggests fading bullish momentum, with bearish divergence on the 4-hour Relative Strength Index (14) and a flat Moving Average Convergence Divergence (MACD) signal indicating risk of a deeper pullback.