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AUD/NZD maintains a weekly low at 1.0900, with RBA policy in focus
AUD/NZD has rallied well around the key support level of 1.0900. The RBA will increase its interest rates by 50 basis points to 1.85%. The New Zealand economy is anticipated to announce positive employment figures.
The AUD/NZD pair has risen significantly after falling close to a key support level of 1.0900 during the Asian trading session. The asset has attracted several bids, and a purchasing response is in the works. Typically, a strong purchasing response implies that market participants saw the underlying item as a good value wager.
As investors anticipate aggressive remarks from the Reserve Bank of Australia, the cross is reversing its downward pace (RBA). RBA Governor Philip Lowe is anticipated to raise the Official Cash Rate (OCR) by 50 basis points for the third time in a row (bps). As of the second quarter of CY2022, the inflation rate in Australia has reached 6,1 percent, resulting in a rise in price pressures. The inflation rate has not yet exhausted its upward momentum, since the prices of oil and food goods remain volatile and indicate future upside potential.
The publication of the Caixin Manufacturing PMI data is of great relevance in today's session. The economic data is anticipated to be marginally lower at 51.5 than the previous reading of 51.7. Australia is China's major trading partner, therefore a decline in Chinese industrial operations will have repercussions for the antipodes.
On the New Zealand front, kiwi bulls are expecting the Tuesday publication of employment statistics. The unemployment rate is projected to decrease to 3.1% from 3.2% previously reported. Other than that, the Employment Change might rise to 0.4% from 0.1% previously.
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