Ella 
AUD/NZD is currently trading slightly higher as market participants digest recent data from Australia and look forward to the ANZ Business Survey data from New Zealand.
Australia’s retail sales came in slightly below expectations at 0.1% on month in April, compared to -0.4% in March. This lackluster performance could affect RBA policy and could prompt it to take a more dovish tone, taking rate hikes off the table following the latest move by the RBA to restart the discussion.
For NZD/USD, New Zealand expectations are focused on the ANZ Business Survey data for May, which will be released during the Asian session. Depending on the outcome, this could affect bets on the RBA’s upcoming monetary policy decision. While RBA officials have hinted at a possible rate cut, the market still expects the RBA to initiate rate cuts in the fourth quarter.
