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AUD/NZD holds near 1.2390 as RBA rate decision looms
AUD/NZD has rebounded since mid-August, climbing to 13-year highs near 1.2491 last week, before technical signals suggested momentum may be fading.
The Aussie dollar was trading practically flat around 1.2390 against the New Zealand dollar on Monday, as market attention turned to the Reserve Bank of Australia’s upcoming decision, FXStreet reports.
AUD/NZD has been on a steady climb since mid-August, reaching 13-year highs near 1.2491 last week, though FXStreet said technical indicators point to potential exhaustion among buyers.
FXStreet also noted that the RBA is widely expected to lift its benchmark rate to a 15-year high of 4.6% on Tuesday, while the Reserve Bank of New Zealand has policy room with its benchmark rate at 2.75%.
According to FXStreet, despite the consolidation near 1.2391 after a more than 4% August to September rally, a bearish divergence on the 4" suggests the pair’s upside may be limited.