The Australian dollar followed its New Zealand counterpart in decline today. Market analysts speculated that the reason for that was the monetary policy statement of New Zealand’s central bank.
The Reserve Bank of New Zealand shocked markets today, suggesting that the next move in interest rates will likely be a cut. Analysts argued that it increased pressure on the Reserve Bank of Australia to follow suit. Speculators were already pricing in two cuts by the RBA this year, and today’s news solidified such outlook.
AUD/USD declined from 0.7134 to 0.7095 as of 11:10 GMT today. EUR/AUD rallied from 1.5793 to 1.5890.
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