MUFG Research sees a scope for further AUD/NZD decline over the coming weeks.
"With the RBA displaying more concern over weaker growth alongside higher inflation, the updated statement will further encourage expectations that the RBA is moving closer to the end of their rate hike cycle. The RBA still reiterated that they expect to raise rates further over the period ahead. We expect another 25bps hike in December which could prove to be the last hike in the cycle if global growth fears intensify heading into next year," MUFG notes.
"The dovish Australian rate market reaction to the RBA’s policy update has contributed to the Australian dollar extending its recent sell-off against the New Zealand dollar. The AUD/NZD rate is attempting to close below support for the 200- dat moving average for the first time since the end of last year," MUFG adds.
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