AUD/NZD rallies beyond 1.1000, highest since early April after RBNZ's dovish 25 bps rate cut

• AUD/NZD regains positive traction and spikes to a fresh multi-month top.
• The RBNZ lowered OCR by 25 bps and projected further interest rate cuts.
• Traders now look to the post-meeting press conference for some impetus.

The AUD/NZD cross attracts some dip-buyers near the 1.0940 region, or a one-and-a-half-week low touched during the Asian session on Wednesday, and snaps a two-day losing streak. The intraday positive move picks up pace following the Reserve Bank of New Zealand's (RBNZ) interest rate decision, lifting spot prices beyond the 1.1000 psychological mark, to the highest level since early April in the last hour.

As was widely expected, the central bank lowered the Official Cash Rate (OCR) from 3.25% to 3.0%. In the accompanying policy statement, the RBNZ projected inflation returning to target by mid-2026 and highlighted spare capacity, stalled growth, and cautious behavior as downside risks. Furthermore, the central bank sees lower OCR levels through 2026, which, in turn, prompts aggressive selling around the New Zealand Dollar (NZD) and provides a goodish lift to the AUD/NZD cross.

The intraday move up, meanwhile, seems rather unaffected by the prevalent selling bias around the Australian Dollar (AUD), suggesting that the path of least resistance for spot prices is to the upside. Traders, however, might refrain from placing fresh bets and opt to wait for more cues about the future rate-cut path. Hence, the focus now shifts to the post-meeting presser, where comments from RBNZ Governor Christian Hawkesby would influence the NZD and the AUD/NZD cross.