Next week the RBNZ is meeting and there is scope for some movement in the AUDNZD pair. At the last RBNZ meeting the RBNZ was very hawkish combating headline inflation that was over 7%. They projected a terminal rate of 5.5% for Q3 this year.
The question now is, ‘what will the RBNZ do and project next week?’
Looking at the AUDNZD pair seasonally there is a strong bias for potential gains. Over the last 23 years, the pair has risen a total of 73.91% of the time. So, if the RBNZ takes a more dovish tone next week, will that provide a perfect boost for the AUDNZD pair?
Major Trade Risks: The major trade risk here is that the RBNZ remains concerned about rising inflation and becomes more hawkish which would likely strengthen the NZD.
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