AUD/NZD Price Analysis: Pressured below 100-bar EMA ahead of RBNZ
|- AUD/NZD attacks the upper limit of 1.0641-1.0683 latest range.
- Bearish MACD, failures to cross key resistances keep sellers hopeful.
- RBNZ to keep interest rate unchanged, news on extra stimulus, rate outlook will be watched closely.
AUD/NZD wavers around 1.0665 amid the initial hours of Wednesday’s Asian session. The pair has been trading in a choppy range following its declines below 100-bar EMA during late-Monday.
Other than recent declines below the key EMA, Friday’s failure to cross the early-October low join bearish MACD signals to favor the AUD/NZD sellers. However, the RBNZ’s upcoming monetary policy decision, at 01:00 GMT, pushes the pair traders to remain cautious ahead of the key event.
Although the New Zealand central bank isn’t expected to alter the benchmark interest rate, currently at 0.25%, hopes of a new line of money supply, directly to banks, can mark the RBNZ’s bearish bias. It should also be noted that some among the analyst fraternity also anticipate Governor Adrian Orr & Company to follow the footsteps of RBA and announce a rate cut, which in turn can propel the pair.
Read: RBNZ Preview: Prepping up for negative interest rates
That said, 100-bar EMA and the stated horizontal resistance comprising the early-October bottom and Friday’s high, respectively around 1.0690 and 1.0755/60, will offer intermediate halts during the surprise run-up by the AUD/NZD prices.
Meanwhile, the 1.0640/30 region, including multiple levels marked since October 26, can stop the AUD/NZD bears before directing them to the previous month’s low of 1.0594.
AUD/NZD daily chart
Trend: Bearish
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