**Australia and New Zealand Dollars Rise as Investors Eye Central Bank Decisions and Global Economic Outlook** *What’s fueling the gains? A detailed look at RBNZ’s policy outlook, commodity prices, and macroeconomic shifts.* — ### Introduction In a week marked by cautious optimism and strategic positioning, the Australian (AUD) and New Zealand (NZD) dollar currencies edged higher against the U.S. dollar, reflecting traders’ expectations of central bank policies, resilient commodity markets, and evolving global risk sentiment. As markets await key statements from the Reserve Bank of New Zealand (RBNZ) and monitor ongoing U.S. inflation data, both

Certainly! Here is a rewritten and expanded version of the article found at Reuters via TradingView, originally reported by Wayne Cole, integrated with new information to provide more context and depth. The length is extended to ensure a minimum of 1000 words, and bullet points are used for clarity where appropriate.

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### Australia and New Zealand Dollars Gain as Investors Weigh RBNZ Policy Stance

*Original reporting by Wayne Cole for Reuters. Additional content and research included for expanded context.*

#### Overview

The Australian and New Zealand dollars experienced modest gains in the early part of the trading week as market participants anticipated key decisions from the Reserve Bank of New Zealand (RBNZ). The moves came amid a confluence of global economic data, U.S. Federal Reserve policy expectations, and shifting risk sentiment across global markets.

#### Market Movements

– On Monday, both the Australian dollar (AUD) and New Zealand dollar (NZD) inched higher, continuing their gradual recovery against the U.S. dollar.
– The AUD benefited from improved risk appetite and stable commodity prices, while the NZD drew additional support from speculation about the RBNZ’s policy path.
– Overnight, NZD/USD traded around 0.6130, well above the 0.6070 low touched earlier in the month, while AUD/USD hovered near 0.6610, retracing some losses seen after U.S. CPI and policy-related volatility.

#### Key Economic Drivers

##### Reserve Bank of New Zealand Policy Risk Assessment

– The RBNZ will be closely watched this week as investors assess the likelihood of future rate hikes or possible messaging around them.
– New Zealand continues to face elevated inflation, with the latest data showing prices remaining stubbornly above the central bank’s 2% target.
– The RBNZ has maintained a hawkish tone in previous meetings, signaling potential for further tightening if data warrants.
– Despite these signals, broader economic trends point toward a slowing growth trajectory, creating a challenging balancing act for policymakers.

##### Australia’s Economic Setting

– The Australian dollar’s recovery is attributed to a combination of factors, including sustained demand for key exports such as iron ore and natural gas.
– Domestic data, like retail sales and employment figures, have portrayed a mixed picture but generally suggest resilience in the face of tighter monetary policy by the RBA.
– The Reserve Bank of Australia, in its recent statements, kept interest rates unchanged, highlighting ongoing concerns about inflation and labor market tightness.

##### U.S. Dollar and Federal Reserve Policy

– The U.S. dollar index hovered near recent lows after the Federal Reserve indicated that while inflation progress had slowed, rate cuts could still be possible in 2024.
– Investors remain cautious, waiting for more data on U.S. economic activity, inflation figures, and signals from Federal Reserve Board members.
– Global risk sentiment has helped support higher-yielding currencies like the AUD and NZD, especially as commodity prices demonstrate stability.

#### Market Sentiment and

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