-
AUD/NZD: Aussie medium-term outperformance against Kiwi intact supported by RBA
The paths of inflationary trends between the two Antipodean countries have started to diverge in the past month. Forward-looking consumer inflation expectations in Australia have inched higher to 4.6% in April from 4.3% printed in March, its highest pace of increase since November 2023 amid elevated prices in services components. In contrast, New Zealand’s 2-year inflation expectations fell to 2.5% in Q1 2024, its lowest level since Q3 2021 from 2.76% recorded in Q4 2023 (see Fig 1). Therefore, the Australian central bank, RBA has adopted a more cautious and prudent stance on its monetary policy guidance and opted ... (full story)