Kiwi dollar holds steady ahead of RBNZ, Aussie awaits inflation test

The New Zealand dollar traded near $0.57 on Monday as markets positioned for a Reserve Bank of New Zealand decision on Wednesday. Traders are pricing in a third rate increase this year, which would put the cash rate at 3.0%, while attention is also on whether officials leave room for another move in December.

The Australian dollar was little changed at $0.7030 before quarterly inflation figures due Wednesday. Forecasts put the trimmed mean measure up 1% for the quarter and its annual rate at 3.6%, above the Reserve Bank of Australia’s 2% to 3% target range. Business Recorder reported that markets have raised the implied chance of an Australian rate increase next Tuesday to 65%, while Commonwealth Bank economist Trent Saunders said the decision would hinge on the inflation report.