The AUD/NZD pair attempted to attract buyers on the decline, but so far, there hasn't been enough conviction to support a sustained move. Intraday upward momentum slowed following the Reserve Bank of New Zealand's (RBNZ) announcement on its monetary policy decision.

As expected, at the conclusion of its May meeting, the RBNZ lowered the Official Cash Rate (OCR) by 25 basis points, from 3.50% to 3.25%. Prior to this decision, the bank had forecasted the OCR to be 3.12% in September 2025 and 2.87% in June 2026, which increases expectations for further rate cuts. Nevertheless, the New Zealand dollar continues to exert pressure on the AUD/NZD pair.

On the other hand, the Australian dollar has shown relative strength, supported by a modest uptick in monthly domestic consumer inflation data. These figures have reduced expectations for a rate cut by the Reserve Bank of Australia (RBA) at its July meeting, which in turn supports interest in the AUD/NZD cross, creating the potential for upside in the near term.

From a technical perspective, traders should exercise caution when opening directional positions, as oscillators on the daily chart are mixed, indicating market uncertainty in the next 24 hours.