AUD/NZD Stalls Ahead of RBA Rate Decision

The Australian Dollar (AUD) is trading almost flat at around 1.2390 against the New Zealand Dollar (NZD), with investors waiting for the Reserve Bank of Australia's (RBA) interest rate decision on Tuesday.

The AUD/NZD pair has been rising steadily since mid-August, reaching a 13-year high of 1.2491 last week, but technical indicators suggest that the rally may be losing steam.

The RBA is widely expected to raise its benchmark interest rate to a 15-year high of 4.6%, but Governor Michelle Bullock faces a challenging situation as inflation risks remain high while economic growth weakens, according to September's Purchasing Managers' Index (PMI) figures.

On the other hand, the Reserve Bank of New Zealand (RBNZ) has more room to tighten its monetary policy, with its benchmark interest rate at 2.75%, but a dovish message from its latest decision has kept the Kiwi from appreciating further.