- AUD/NZD is expected to display significant losses after surrendering the cushion of 1.0300.
- The RBNZ is likely to announce a half-a-percent rate hike for the fourth time consecutively.
- A lower Australian Consumer Inflation Expectations print has failed to support aussie bulls.
The AUD/NZD pair has turned sideways at around 1.0400 after a downside move from 1.0500. The asset is on the verge of printing a fresh weekly low if the kiwi bulls manage to drag the cross below the immediate support of 1.0300. A release of an upbeat Business NZ PMI has strengthened the kiwi bulls.
The Business NZ PMI data has landed at 52.7, higher than the expectations of 52.5 and the prior release of 50. This is going to delight the Reserve Bank of New Zealand (RBNZ) in its fight against inflation. Next week, the RBNZ will announce an interest rate decision in its monetary policy meeting. RBNZ Governor Adrian Orr is expected to step up its Official Cash Rate (OCR) by 50 basis points (bps) consecutively for the fourth time. An announcement of the same will elevate the OCR to 3%.
As per the Reuters survey, the RBNZ will elevate its OCR to 4.00% by mid-2023. And, the Inflation is expected to fall within the target range of 2-3% in the H1CY2023. It seems like the RBNZ’s goal of bringing price stability is visible now.
On the Aussie front, lower Consumer Inflation Expectations data has failed to support the aussie bulls. A slippage in aussie Consumer Inflation Expectations, which presents the consumer expectations of future inflation during the next 12 months will force a decline in the hawkish guidance by the Reserve Bank of Australia (RBA).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD remains on the defensive above the 0.6400 mark following Australian PMI data
The AUD/USD remains on the defensive, trading near 0.6415, losing 0.02% on the day. The Aussie faces some follow-through selling after the Federal Reserve (Fed) decided to hold the interest rate on Wednesday but expected at least one more rate hike for the year.
USD/JPY twisting on the north side of 147.50, Japan CPI ticks lower to 3.2%
The USD/JPY is holding steady with a bullish lean for early Friday trading, teasing into the 147.650 region as the Japanese Yen (JPY) eases on softly-declining national inflation figures.
Gold recovers its losses above $1,910, eyes on US PMI data
Gold price recovers some lost ground around $1,920 amid the USD demand. Hawkish comments from Federal Reserve (Fed) Chair Powell drags XAU/USD price lower. Investors will closely watch the preliminary US S&P Global/CIPS PMI data.
Space ID price succumbs to selling pressure with $3.54 million worth of ID tokens unlocked in a cliff event
Space ID price remains bullish based on the Parabolic SAR price-tracking indicator, which continues to track ID price from below. However, the token is trading at a value that is significantly lower than its rate 24 hours ago, an outcome attributed to its scheduled token unlocks event.
Japan Interest Rate Decision Preview: Bank of Japan expected to stand pat despite Ueda hawkish hint
The Bank of Japan (BoJ) is set to announce its monetary policy decision early on Friday. The Japanese Yen (JPY) could see a wide reaction, not because of the decision itself, but because of any potential hint to the end of the ultra-loose monetary policy that has been in place since early 2016.