AUD/NZD remains flat after registering more than 0.25% losses in the previous session, trading around 1.1550 during the Asian hours on Wednesday. The currency pair stays close to 1.1590, which is the highest level since September 2013, reached on November 10.
The Australian Dollar (AUD) may gain against its peers amid cautious sentiment surrounding the Reserve Bank of Australia’s (RBA) policy outlook. RBA Deputy Governor Andrew Hauser commented on Wednesday, “Our best estimate is that monetary policy remains restrictive, though the committee continues to debate this.” He added that if policy is no longer mildly restrictive, it would have significant implications for future decisions.
On the data front, the University of Melbourne reported on Tuesday that Australia’s Westpac Consumer Confidence surged 12.8% in November to 103.8, surpassing the 100 mark for the first time since February 2022. This rebound follows a 3.5% decline in October and marks the strongest non-pandemic reading in seven years, driven by improving economic conditions and easing external risks.
The AUD/NZD cross may continue its winning streak as the New Zealand Dollar (NZD) faces challenges amid rising expectations of a 25-basis-point rate cut to 2.25% by the Reserve Bank of New Zealand (RBNZ) in November. Markets are also pricing in a 10% chance of a deeper 50-basis-point cut, amid growing job losses and concerns of the economy edging toward a second recession.
Dovish sentiment around the RBNZ’s policy outlook intensified following the release of the RBNZ Inflation Expectations on Tuesday, which remained steady at 2.28% quarter-over-quarter (QoQ) in the fourth quarter, staying within the official target range of 1%-3%.
https://bitcoinethereumnews.com/finance/aud-nzd-hovers-around-1-1550-following-cautious-remarks-from-rbas-hauser/
