The AUD/NZD currency pair was mostly steady on Thursday, as the Australian Dollar favored stronger domestic trade data, while the New Zealand Dollar drew support from the RBNZ’s recent policy messaging.
Reserve Bank of New Zealand Governor Anna Breman indicated last week that the official cash rate was likely to rise sooner and by a larger amount than previously signaled.
She pointed to inflation pressures linked to the Middle East conflict, softer growth and rising input costs in New Zealand and across its trading partners.
In response, markets have adjusted their expectations for the New Zealand policy path. Pricing now reflects the view that the central bank will deliver multiple rate hikes through early 2027.
Meanwhile, in Australia, data by the Australian Bureau of Statistics showed that the country’s trade balance had returned to a monthly surplus of $1,791 million in April.
The result followed a deficit of $1,024 million in the prior reading, which had been revised from $1,841 million.
The shift back into surplus was supported by a rebound in exports. Australia’s exports rose 7.2% MoM in April, reversing a 2.5% decline recorded a month earlier.
On the import side, growth moderated, with imports increasing 0.8% MoM in April after a 12.2% gain in March.
A stronger trade balance can reflect solid export demand or underlying economic resilience. Such outcomes may encourage expectations that the Reserve Bank of Australia will either raise interest rates or keep restrictive policy settings.
The AUD/NZD currency pair was last up 0.02% on the day to trade at 1.2154.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
