AUD/NZD dropped further beneath 1.0600 as RBA affirmed its rate bias
|- RBA accepted that the inflation remains subdued and the likelihood of near term rate hike is low.
- 1.0545/40 gains market attention amid recent selling pressure.
The AUD/NZD pair trades near 1.0590 during early Tuesday. The pair dropped to the intra-day low after the Reserve bank of Australia (RBA) conveyed less likelihood of rate-hike bias and worries over the inflation and the gross domestic product (GDP) readings.
The pair has been on an upside recently as positive news reports surrounding the US-China trade negotiations and positive data from China favored the Australian Dollar (AUD) as China is Australia’s largest consumer.
Adding to the AUD strength could be a recent risk-on sentiment that went viral after China data and the US equities pleased optimists.
Further, a weekly release of Australia’s ANZ Roy Morgan consumer sentiment survey grew 115.3 from 113.2 during its early-day release.
However, the Aussie buyers remained on sidelines ahead of the RBA minutes expecting the central bank to affirm its easing bias (which the central bank actually did).
Investors may now observe news reports concerning the trade deal between the US and China for fresh impulse. The much-awaited talks are positively progressing with both the sides giving each other a room to have a good trade deal in the near future.
AUD/NZD Technical Analysis
While the inability to rise past-1.0625 portrays the pair’s weakness, the pair needs to slip beneath 1.0545/40 support-zone comprising April 10 low to mid-February high in order to visit 100-day simple moving average (SMA) level of 1.0490.
Alternatively, an upside clearance of 1.0625 enables the quote to challenge 200-day SMA level of 1.0685 ahead of aiming 1.0700 round-figure.
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