AUD/NZD has not changed from 1.1230 despite RBA Lowe's testimony

There has been no movement in the AUD/NZD pair throughout the Tokyo session despite evidence from Philip Lowe, governor of the Reserve Bank of Australia (RBA). Despite a recent dip, the asset is trading within a narrow range of 1.1220 to 1.1232. Tuesday's attempt to break through 1.1258 was unsuccessful, and the asset subsequently fell. The likelihood of a negative reversal has grown due to the presence of strong selling pressure at current elevated levels.

As Lowe testified, he plans to do so, inflationary pressures will be reduced. The RBA is not as eager as some other central banks would be to attain price stability if it meant sacrificing economic development.

Although the central bank is not following a set course, market participants should keep in mind that the RBA has pegged an objective for the Official Cash Rate (OCR) of 3.85%. RBA Despite his conviction that "labor cost rise is consistent with inflation returning to goal," Lowe has painted a bleak outlook for the economy.

Earlier, the Aussie bulls were under pressure after weaker-than-expected job data was released in Australia. Statistics on Employment Change fell short, coming in at 33.5k instead of the expected 35k. The economy reported 40,900 job losses in July. The increase in the unemployment rate was also quite large, coming in at 3.5% compared to 3.4% forecasted and 3.4% reported previously.

As for New Zealand, the bullish Business NZ PMI data released early in the Tokyo session has not caused a notable reaction from kiwi buyers. Numbers for the economy were better than expected, coming in at 54.9 versus 52.5 and 52.7.