Antipodean Bull Run Hindered by Fed’s Hawkish Resilience: AUD/USD & NZD/USD Tightrope
AUD/USD and NZD/USD have rallied strongly as markets priced in a softer US inflation outlook and the potential for Fed easing. Yet Federal Reserve officials remain cautious, signaling that rate cuts may take longer amid sticky inflation and a resilient labor market. This Fed stance limits the upside for the antipodean currencies despite improving domestic fundamentals and easing global growth concerns. The interplay between local conditions and Fed policy will be key to watch for these pairs’ next moves.