Australian Dollar retakes 1.2400 vs New Zealand Dollar after RBA's 25 bps rate hike
The AUD/NZD cross reverses a modest Asian session dip to the 1.2360 area and jumps to a three-day high after the Reserve Bank of Australia (RBA) announced its policy decision.
The Australian Dollar (AUD) has regained ground against the New Zealand Dollar (NZD) after the Reserve Bank of Australia (RBA) raised its policy rate by 25 basis points to 4.60%. This move, which is the highest since September 2011, was widely expected and comes amid concerns that the upside risk to inflation is materializing. The RBA's decision leaves open the possibility of further tightening, supporting the AUD and the AUD/NZD cross.
However, there is still some hesitation among Australian bulls, who are waiting for additional clues about the RBA's future policy path. The upcoming comments from RBA Governor Michele Bullock during the post-meeting press conference will be closely watched, as they will provide a key insight into the bank's future policy intentions.
Meanwhile, the Reserve Bank of New Zealand (RBNZ) is expected to raise its OCR on October 28, which will likely support the NZD and help keep the AUD/NZD pair from rising too much.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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