Australia and New Zealand Banking Group (ANZ) has put forth their perspective on the upcoming RBA decision and its implications for the AUD/NZD pair:
Key Takeaways:
-
RBA’s Expected Decision: ANZ predicts that the Reserve Bank of Australia (RBA) will opt to maintain the current rate levels during its meeting on Tuesday.
-
Impact on AUD: The potential decision of the RBA to pause and not change rates this week is not expected to have significant ramifications for the Australian Dollar. Instead, the currency’s movement will be influenced predominantly by global dynamics.
-
NZ Labour Data and NZD: While labour statistics from New Zealand are set to be released this week, ANZ believes that global factors will be the primary determinants of the New Zealand Dollar’s trajectory.
-
AUD/NZD Strategy: The bank observes that the AUD/NZD currency pair is likely to remain within its existing range. As a strategic move, ANZ recommends waiting for the pair to dip to a rate of 1.07 before making a decision to buy into AUD/NZD.
Summary:
ANZ anticipates the RBA to maintain the status quo in its upcoming decision, which won’t notably influence the AUD. While New Zealand’s labor data is due for release, it’s the global factors that will chiefly drive the NZD. When it comes to the AUD/NZD pair, ANZ’s strategy is to wait for a favorable rate of 1.07 prior to purchasing.
For bank trade ideas, check out eFX Plus. For a limited time, get a 7 day free trial, basic for $79 per month and premium at $109 per month. Get it here.
This article was written by Adam Button at www.forexlive.com. Source