The AUD/NZD currency pair was a notch weaker at the start of the new week, as market players shift their focus to the minutes of the Reserve Bank of Australia’s February policy meeting for more insight into the central bank’s thinking.
The Forex pair extended a pullback from Friday’s one-week high of 1.0702.
The RBA left its cash rate without change at 4.35% at its February meeting, as largely expected.
Yet, the central bank warned further policy tightening could not be ruled out, as inflation was still elevated and cost of services was not decreasing quickly enough.
RBA policy makers noted they needed to be confident that inflation would go back down to the target range of 2% to 3% in 2025 and to the midpoint in 2026.
The RBA minutes will be released on Tuesday.
Futures markets are pricing 36 basis points of rate cuts by the Reserve Bank of Australia this year, with the odds of a cut in August being at 70%.
Meanwhile, NZD traders will be paying attention to New Zealand’s producer price inflation data for the fourth quarter due out at 21:45 GMT on Tuesday.
As of 10:07 GMT on Monday the AUD/NZD currency pair was edging down 0.19% to trade at 1.0643. Last week, the minor Forex pair went up as high as 1.0702. The latter has been the pair’s strongest level since February 7th (1.0713).
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