AUD/NZD Slides Toward 1.1440 on RBA’s Rate Hold
AUD/NZD dropped sharply to around 1.1440 after the Reserve Bank of Australia kept its Official Cash Rate at 3.6%, a move largely anticipated following a faster-than-expected rise in Q3 inflation. Consumer prices climbed 3.2% year-on-year in July–September, up from 2.1% in Q2, leading traders to consider the possibility of an RBA rate hike before mid-2026 if price pressures persist.
Earlier this month, RBA Governor Michele Bullock told a parliamentary committee that the bank stands ready to adjust policy again should inflation remain stubborn.
Looking ahead, the Australian dollar’s next key catalyst will be Thursday’s November labour market report. Forecasts call for the economy to have added 20,000 jobs—down from 42,200 in October—while the unemployment rate is expected to tick up to 4.4% from 4.3%. These figures will help shape market expectations for the RBA’s future moves.
Meanwhile, the New Zealand dollar is outperforming its Australian counterpart amid bets that the Reserve Bank of New Zealand has wrapped up its easing cycle after cutting its policy rate by 25 basis points to 2.25% in late November.
