AUD Surges to Two-Month High vs NZD on Aussie GDP Beats and RBNZ Rate Hike

The Australian Dollar (AUD) surged to its highest level against the New Zealand Dollar (NZD) since July 8, reaching 1.2200 after Australia's GDP growth beat expectations and the Reserve Bank of New Zealand (RBNZ) raised interest rates by 25 basis points.

The RBNZ's decision was in line with market forecasts, but the NZD weakened across the board due to a lack of hawkish signals in the policy statement.

The AUD drew support from Australia's GDP growth, which rose 0.4% in the second quarter of 2026, higher than the previous quarter and consensus estimates.

Strategists at OCBC noted that while their base case remains that the RBA has reached the end of its tightening cycle, recent data have complicated the picture, keeping the risk of another rate hike alive.