AUD/NZD climbs to near 1.1170 after a strong demand ahead of RBA minutes
- AUD/NZD has jumped to near 1.1170 as the focus has shifted to RBA minutes.
- The downbeat consensus for Australian job additions data would keep aussie on tenterhooks.
- NZ inflation data is seen lower at 6.6% against the former release of 7.3%.
The AUD/NZD pair has driven to near 1.1170 in the early Tokyo session after picking fresh demand from around 1.1134. On a broader note, the cross has been declining consecutively for the past five trading sessions. Last week, the asset witnessed an intense sell-off after dropping below the critical cushion of 1.1240.
The pair has sensed a buying interest ahead of the Reserve Bank of Australia (RBA)’s minutes, which will release on Tuesday. The RBA minutes will provide a detailed explanation behind announcing a rate hike by 25 basis points (bps). In October monetary policy meeting, RBA Governor Philip Lowe went against the projections and trimmed the pace of hiking the Official Cash Rate (OCR) to 25 bps. Earlier, the central bank was hiking its OCR by 50 bps.
Apart from the explanation of slowing down the pace of hiking crucial rates, the minutes will disclose the economic fundamentals and guidance over interest rates.
Going forward, Thursday’s employment data also holds significant importance. The Employment Change data is expected to decline to 25k against the prior print of 33.5k. While the jobless is seen as stable at 3.5%.
On the kiwi front, Tuesday’s Consumer Price Index (CPI) data will be of utmost importance. The expectations for annual inflation data for the third quarter are significantly lower at 6.6% vs. the prior print of 7.3%. The occurrence of the same could trim the extent of the hawkish tone by Reserve Bank of New Zealand (RBNZ) policymakers.
Author
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
