AUD and NZD Hesitate as Gulf Conflict Drags On

Author: Ceren Kaya…

AUD and NZD Hesitate as Gulf Conflict Drags On

The Australian and New Zealand dollars hesitated on Tuesday as renewed U.S. military strikes on Iran cast doubt on a peace deal. The Aussie paused at $0.7170, while the kiwi edged back to $0.5860.

Key Data and Expectations

Australia's April CPI data is due this week, with median forecasts for a 0.6% monthly rise. Core inflation is expected to edge up to 3.4% annually, which could prompt the RBA to consider another rate hike.

The Reserve Bank of New Zealand meets on Wednesday and is widely expected to hold rates at 2.25%, though a hike is possible.

Impacted Symbols

Symbols affected by this headline and their sentiment signals

NZDUSDNegative

NZD/USD

Risk aversion due to Gulf conflict weighs on the kiwi. RBNZ is expected to hold rates, but inflation outlook poses upside risks.

Impact score60%

AUDUSDNegative

AUD/USD

Geopolitical tensions reduce risk appetite, pressuring the Aussie. Additionally, upcoming CPI data could disappoint, lessening rate hike expectations.

Impact score65%

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