- AUD/NZD attracts significant bids and jumps to near 1.0860 as the RBA surprisingly kept the OCR steady at 3.85%.
- The RBA kept interest rates steady to get more clarity on whether inflation is on track to return to the 2.5% target.
- Investors expect the RBNZ to leave the OCR unchanged at 3.25%.
The AUD/NZD pair jumps to near 1.0860 during the Asian session on Tuesday. The pair attracts significant bids as the Reserve Bank of Australia (RBA) has surprisingly kept its Official Cash Rate (OCR) steady at 3.85%.
Traders were increasingly confident that the RBA will reduce interest rates by 25 basis points (bps) to 3.6% amid downside economic risks and cooling inflationary pressures. According to the June 30-July 3 Reuters poll, 84% of respondents had predicted that the RBA will cut its key borrowing rates.
Theoretically, higher interest rates by the RBA bode well for the Australian Dollar (AUD) as they restricts the flow of the currency.
The RBA has signaled that current market conditions provide them to room to wait for clarity on inflation. The board judged “it could wait for more information to confirm inflation remains on track to reach 2.5% on a sustainable basis”.
Meanwhile, investors brace for more volatility in the cross as the Reserve Bank of New Zealand (RBNZ) is scheduled to announce its monetary policy on Wednesday in which it is expected to leave its OCR steady at 3.25%.
This would be the first pause by the RBNZ since August 2024 when it started its monetary expansion cycle. Till then, the RBNZ has reduced its OCR six times by 225 basis points (bps). However, the RBNZ would leave the door open for further interest rate cuts amid downside economic risks in the face of global trade war due to the United States (US) tariff policy.
作者:Sagar Dua,文章来源FXStreet_id,版权归原作者所有,如有侵权请联系本人删除。
风险提示:以上内容仅代表作者或嘉宾的观点,不代表 FOLLOWME 的任何观点及立场,且不代表 FOLLOWME 同意其说法或描述,也不构成任何投资建议。对于访问者根据 FOLLOWME 社区提供的信息所做出的一切行为,除非另有明确的书面承诺文件,否则本社区不承担任何形式的责任。
FOLLOWME 交易社区网址: www.followme.ceo
加载失败()