Kiwi dollar holds steady ahead of RBNZ, Aussie awaits inflation test
SYDNEY: The kiwi dollar was little changed on Monday ahead of a central bank decision widely expected to see interest rates rise for a third time this year, while the Aussie awaited inflation data that could make or break the case for an imminent rate hike. The kiwi was steady at $0.57, after climbing 0.8% last week for a second weekly gain. That has partly offset a seven-week slide that began at…
New Zealand's kiwi dollar remained stable on Monday as the Reserve Bank of New Zealand (RBNZ) prepared to potentially raise interest rates for a third time this year. In contrast, the Australian dollar awaited inflation data that could determine the fate of an imminent rate hike. The kiwi stood at $0.57, up 0.8% from the previous week, after a seven-week decline began in late August.
The RBNZ, along with other major central banks, is meeting this week, with markets anticipating a third rate hike to 3.0% this year. Westpac economist Satish Ranchhod expects the RBNZ to raise rates again in December, leaving the possibility of additional hikes in February. Meanwhile, the Australian dollar held steady at $0.7030, having risen 1.3% last week.
Resistance lies around the 200-day moving average of $0.7050, with support found amid hawkish comments from the Reserve Bank of Australia, which increased the probability of a fifth rate hike this year to 65%. The key factor will be the inflation report due on Wednesday, with forecasts pointing to a 1% increase in the trimmed mean inflation measure, slightly above the RBA's target range of 2% to 3%.
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