AUD/NZD Steady Ahead of Crucial Data and Central Bank Events

The Australian Dollar (AUD) is holding above 1.2100 against the New Zealand Dollar (NZD), but traders are hesitant ahead of key data and central bank events this week.

The AUD/NZD cross has been positive for four consecutive days, reaching a fresh high since July 9 during Monday's Asian session. However, spot prices have struggled to build momentum and currently trade just above the 1.2100 mark.

Australia's June-quarter Gross Domestic Product (GDP) report is scheduled for release on Wednesday, followed by the Reserve Bank of New Zealand's (RBNZ) monetary policy decision. The NZIER Monetary Policy Shadow Board result suggests that the RBNZ will increase the OCR by 25 basis points in September and signal further hikes by year-end, supporting the NZD.

The Australian Dollar continues to draw support from the Reserve Bank of Australia's hawkish outlook, with Governor Michele Bullock stating that a rate cut is not on the agenda and additional tightening remains 'quite possible' if inflation fails to cool as projected.