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Australian dollar strengthens versus New Zealand after RBA rate hike

The RBA lifted its Official Cash Rate by 25 basis points to 4.60%, the highest since 2011, supporting the AUD/NZD move.

Reported · Written up by our desk · Major Pairs

FXStreet reports the AUD/NZD cross reversed an earlier dip into the 1.2360 area and rose to a three day high after the Reserve Bank of Australia delivered its latest policy decision.

Spot prices were last seen just above 1.2400, up about 0.15% for the day, with the gain reflecting market reaction to the RBA raising the Official Cash Rate by 25 bps to 4.60%.

In its statement, the RBA said the upside risk to inflation is materialising and reiterated it is focused on preventing high inflation from becoming embedded, leaving room for additional tightening.

The article adds that follow through buying has been limited so far, and attention is shifting to RBA Governor Michele Bullock’s comments at the post meeting press conference for further direction on the AUD and the AUD/NZD cross.

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