AUD/NZD is knocking on December’s range resistance!
In case you missed it, the New Zealand dollar dropped like a rock against its major counterparts earlier today.
One potential cause for today’s drop is New Zealand printing a weaker-than-expected food price index, which resulted in banking and financial services company Westpac revising its New Zealand quarterly inflation forecasts down from 0.6% to 0.3% for Q4 2023.
Take note that lower producer inflation and inflation projections would make it harder for the Reserve Bank of New Zealand (RBNZ) to sustain its hawkish “higher for longer” stance. This would increase the odds of NZD losing its interest rate differential edge against its major counterparts!
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