Today, the AUD/NZD pair gained strength following the RBNZ's rate decision, pushing spot prices above the psychological level of 1.1000 and reaching their highest since early March. As expected, the central bank reduced the OCR from 3.25% to 3.0%. In its statement, the regulator noted that inflation is expected to return to the target level by mid-2026. It also highlighted unused production capacity, slowing economic growth, and caution as risk factors for further declines. Moreover, forecasts point to the possibility of the OCR dropping to even lower levels in 2026, triggering active selling of the New Zealand dollar and supporting the rise in the AUD/NZD pair.
From a technical standpoint, the AUD/NZD pair strengthened above the 200-day SMA, broke through the psychological level of 1.1000, and reached its highest since early March. However, the Relative Strength Index on the daily chart is in overbought territory, suggesting the likelihood of a correction or a minor pullback.
During the Asian session on August 21, attention should be paid to economic releases from Australia and New Zealand for potential trading opportunities.
