AUD/NZD sees fall below 1.0300 on hawkish RBNZ bets

After a decline from 1.0500 to 1.0400, the AUD/NZD currency pair is again trading sideways. If the kiwi bulls manage to drag the cross below the immediate support of 1.0300, the asset is on the approach of publishing a new weekly low. The revelation of a positive Business New Zealand PMI has bolstered the kiwi bulls.

The Business NZ PMI has reached 52.7, which is greater than the anticipated 52.5 and the previous report of 50. This will please the Reserve Bank of New Zealand (RBNZ) in its efforts to combat inflation. The RBNZ will announce an interest rate decision during its monetary policy meeting the following week. Governor Adrian Orr is anticipated to raise the Official Cash Rate (OCR) by 50 basis points (bps) for the fourth time in a row. A similar announcement will increase the OCR to 3%.

According to a Reuters survey, the RBNZ will increase its OCR to 4.00% by the middle of 2023. And it is anticipated that inflation will fall below the target range of 2% to 3% during the first half of 2023. It appears that the RBNZ's objective of achieving price stability is now apparent.

On the Australian front, weaker-than-expected Consumer Inflation Expectations data has failed to bolster the Aussie bulls. A drop in the Australian Consumer Inflation Predictions, which represents consumer expectations of future inflation over the next 12 months, will cause the Reserve Bank of Australia to reduce its hawkish direction (RBA).