- AUD/NZD falls as hawkish RBNZ policy outlooks boosted the New Zealand Dollar.
- RBNZ’s Breman stated that rates are likely to increase sooner and by more than previously signaled to combat persistent inflation.
- Australian Dollar falls as markets slashed expectations for further RBA interest rate hikes.
AUD/NZD depreciates for the third successive day, trading around 1.2020 during the Asian hours on Friday. The currency cross loses ground as the New Zealand Dollar (NZD) finds strong support amid growing hawkish sentiment surrounding the Reserve Bank of New Zealand’s (RBNZ) policy outlook.According to Reuters, RBNZ Governor Anna Breman stated on Friday that interest rates are likely to increase sooner and by more than previously signaled to combat persistent inflation. While the central bank decided to keep the Official Cash Rate (OCR) on hold at 2.25% during its May meeting on Wednesday, the decision revealed a deeply divided board, with three members voting for an immediate quarter-point hike and three voting to maintain the status quo.