Search ForexCrunch
  • The Reserve Bank of Australia, (RBA), is on the slate.  
  • RBA to hold, as there are signs that the housing market is turning, employment solid enough.  

AUD/NZD is one to watch today with the Reserve Bank of Australia on the slate. AUD/NZD has given back some ground in the lead in to the event, correcting back from the 1.0693 highs scored at the end of last month. AUD/NZD is currently trading at 1.0646, down -0.225 on the day having travelled from a high of 1.0686 to a low of 1.0639.

Analysts expect the RBA to remain on the sideline for another month, even as it faces the prospect of yet another downgrade to its 2019 growth forecast. “The RBA will be aware that growth looks likely to severely undershoot its forecasts. We’re expecting a soft 0.2% q/q rise for Q2 GDP on Wednesday, which would see annual growth dip to 1.1% y/y. This could see serious consideration given to cutting again. But, offsetting this, employment was solid in July, consumers are more positive about their finances, and there are signs that the housing market is turning,” analysts at ANZ Bank argued.  

Market pricing for RBNZ is for 5bp of easing on 25 September

Meanwhile,the   bird sits in a tight range and trades close to the multi-year lows while markets await further evidence that the Reserve Bank of New Zealand is indeed on a path to lower and likely to remain leading the race to the bottom – New Zealand has been impacted by a slowdown in global growth and escalations of the trade war due to trade, financial markets, and uncertainty – Market pricing for RBNZ is for 5bp of easing on 25 September, with a terminal rate of 0.57%.

AUD/NZD levels