AUD/NZD making a run for 1.11 on RBNZ flub

The RBNZ has pushed out expectations of a rate hike, pushing the Kiwi lower.
The Aussie is climbing against the NZD, the decided victor in today's Antipodean matchup.

Joshua Gibson FXStreet

The AUD/NZD pairing is breaking into 1.1080 and continuing to head higher after the Reserve Bank of New Zealand (RBNZ) delivered a rate statement that sees New Zealand's interest rate set to remain on its current course for the visible future.

The RBNZ shifted their stance further into dovish territory today, with RBNZ chief Orr stating that, "the Official Cash Rate (OCR) remains at 1.75 percent. We expect to keep the OCR at this level through 2019 and into 2020, longer than we projected in our May Statement. The direction of our next OCR move could be up or down." The NZD is slumping in the broader markets as Kiwi traders adjust their expectations for rate hikes to come even further into the future than were previously expected.

The RBNZ attempted to soften the blow of today's announcement by stating yesterday that "there are plenty of reasons to remain optimistic", but traders were largely indifferent to the pre-gamed statements, and the AUD/NZD is clipping into fresh highs for 2018.

AUD/NZD levels to watch

With the latest RBNZ rate statement busting the Kiwi into new lows, the AUD/NZD pairing is bouncing into new 2018 highs, and support is resting far below the drastic move at this week's last swing high of 1.035, with the week's low at 1.0950; resistance levels are seen at August 2017's swing high of 1.1145, with 2017's technical top sitting near 1.1290.

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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