Westpac watches AUD/NZDAustralian Dollar vs New Zealand DollarBLACKBULL:AUDNZDBlackBull_MarketsWestpac is watching AUD/NZD closely at 1.2000, after attempts to break lower in both July and August failed. The latest move higher has been supported by the Reserve Bank of Australia’s hawkish stance. The RBA left the cash rate unchanged at 4.35% this week. However, the central bank maintained that further tightening remains possible if upside inflation risks materialise. Despite the hawkish tone, Westpac does not expect another RBA hike as its base case. The bank expects rates to remain on hold until around the middle of next year. For AUD/NZD, Westpac says Australian-New Zealand yield spreads would likely need to tighten further to generate more sustained downside pressure on the pair. And that remains a possibility. The RBNZ raised the OCR to 2.50% in July and meets again on 2 September 2026 for its next rate decision. Markets are currently pricing roughly even odds of another hike.