AUD NZD Trade Near Multi-Month Lows Amid Inflation Risks

The Australian and New Zealand dollars are trading near multi-month lows as rising oil prices add to inflation risks. The Aussie is currently flat at $0.7020, having lost 1.5% last week to hit an eight-week low of $0.7004.

This marks the third straight week of declines that broke key support at the 200-day moving average of $0.7025, leaving it well below a four-month peak of $0.7238 seen just over two weeks ago.

The Reserve Bank of Australia is expected to hike interest rates by 25 basis points to 4.60% on Tuesday, its fourth rate hike this year. Markets are currently pricing in about 40 basis points of more tightening after Tuesday.