Will the AUD/NZD find dip buyers after the RBAs hawkish hold?

Usually the best pair to trade interest rate differentials between the RBA and the RBNZ is the AUDNZD currency pair. On Tuesday of the week the RBA met and there was a shift in their policy meeting which showed a โ€˜hawkish holdโ€™. As a very brief summary the RBA decided to drop the word โ€˜patientโ€™ from their statement language in recognition of the rise in inflation the central bank has seen. Furthermore, the RBA see inflationary pressures set to rise over the near term and that dies increase the chances of an RBA interest rate hike this year. As a result of this shift you would typically expect some gains in the AUD/NZD currency pair.

Between now and April 28 the AUDNZD pair has gained a total of 10 times over the last 15 years. The largest gain was an impressive 4.45% rise in 2020. With the RBAโ€™s hawkish hold will the AUDNZD pair gain again this year?

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