Credit Agricole CIB Research discusses its expectations for next week's RBA policy meeting.
"Lockdowns and the risk of a weaker bounce in the economy after the removal of lockdowns will cause the RBA to delay its decision to taper its asset purchases from September to November. Persistently weak wage growth will also see the RBA continue to forecast rate hikes beginning no earlier than 2024, in our view.
"While the latter is expected by the market, market opinions are divided on whether or not the RBA will delay its taper, so it will be a binary event for the AUD. While a weaker AUD if the RBA were to delay its taper would weigh on the NZD, we think AUD/NZD selling would give the NZD significant support over the week