Neutral
AUD/NZD rises to 1.2400 after RBA's 25 bps rate hike; RBNZ's October decision awaited.
The Australian Dollar strengthened against the New Zealand Dollar following the Reserve Bank of Australia's (RBA) decision to raise the Official Cash Rate by 25 basis points to 4.60%, the highest level since 2011. This move underscores the RBA's ongoing concerns about inflation risks. However, market participants are cautious, awaiting further guidance from RBA Governor Michele Bullock's upcoming press conference and monitoring expectations for the Reserve Bank of New Zealand's (RBNZ) potential rate hike on October 28.
Key points
- RBA raises Official Cash Rate by 25 bps to 4.60%, highest since 2011.
- Market awaits RBA Governor's press conference for future policy guidance.
- RBNZ's anticipated rate hike on October 28 supports NZD, limiting AUD/NZD gains.
Sources
- AUD/NZD: Underperformance bias with RBA on hold – TD SecuritiesFXStreet · September 29, 2026
- AUD/NZD rises to 1.2279; rate spreads set the tone — FX Market Recap, Sep 8FXMacroData · September 8, 2026
- AUD/NZD rises to 1.2014; rate spreads set the tone — FX Market Recap, Aug 25FXMacroData · August 25, 2026
AI-generated from public news sources. Not financial advice.
