Dovish RBA sends AUD/NZD underneath the 200 DMA for first time since 2022 – MUFG

MUFG Analysis sees a scope for additional AUD/NZD decline over the approaching weeks.

“With the RBA exhibiting extra fear over weaker expansion along
upper inflation, the up to date observation will additional inspire
expectancies that the RBA is transferring nearer to the tip in their fee hike
cycle. The RBA nonetheless reiterated that they be expecting to boost charges additional
over the length forward. We think every other 25bps hike in December which
may end up to be the ultimate hike within the cycle if world expansion fears
accentuate heading into subsequent yr,” MUFG notes.

“The dovish Australian fee marketplace response to the RBA’s
coverage replace has contributed to the Australian greenback extending its
fresh sell-off towards the New Zealand greenback. The AUD/NZD fee is
making an attempt to near underneath reinforce for the 200- dat transferring moderate for
the primary time for the reason that finish of ultimate yr,” MUFG provides.

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