AUD/NZD plunges to near 1.1250 as RBNZ hikes OCR for the fifth time by 50 bps


  • AUD/NZD has dropped significantly to 1.1250 on RBNZ's interest rates hike of 50 bps.
  • This is the fifth consecutive 50 bps rate hike which has pushed the OCR to 3.5%.
  • Earlier, RBA surprised the FX domain by announcing a 25 bps rate hike, lesser than projections.

The AUD/NZD pair has witnessed a perpendicular fall after the Reserve Bank of New Zealand (RBNZ) hiked its Official Cash Rate (OCR) by 50 basis points (bps) consecutively for the fifth time. The extent of the rate hike is in line with the projections and has pushed the OCR to 3.5%. The cross has dropped firmly to near 1.1250.

It is worth noting that RBNZ Governor Adrian Orr has preferred to continue bringing price stability and has ditched focus on growth prospects for now. Mounting inflationary pressures are required to tame sooner as they will continue to hurt the wallets of households. For the second quarter of CY2022, the inflation rate was recorded at 7.3%.

On the Australian front, the aussie bulls are still in the hangover of a lower-than-projected rate hike by the Reserve Bank of Australia (RBA). In its October monetary policy meeting on Tuesday, RBA Governor hiked the OCR by 25 bps, lower than the expectations of 50 bps. RBA’s surprise move of ditching the 50 bps rate hike pattern at the fifth time restricted aussie at the lower side.

The current RBA’s OCR stood at 2.6% and the RBA is seeing the interest rate top around 3.85%. The novel approach of keeping the growth prospects along with the priority of cooling down price pressures by the RBA will reach the desired interest rates in 2023.

AUD/NZD

Overview
Today last price 1.1248
Today Daily Change -0.0103
Today Daily Change % -0.91
Today daily open 1.1351
 
Trends
Daily SMA20 1.1304
Daily SMA50 1.1194
Daily SMA100 1.1119
Daily SMA200 1.0951
 
Levels
Previous Daily High 1.142
Previous Daily Low 1.1308
Previous Weekly High 1.1491
Previous Weekly Low 1.1329
Previous Monthly High 1.1491
Previous Monthly Low 1.1115
Daily Fibonacci 38.2% 1.135
Daily Fibonacci 61.8% 1.1377
Daily Pivot Point S1 1.1299
Daily Pivot Point S2 1.1247
Daily Pivot Point S3 1.1187
Daily Pivot Point R1 1.1412
Daily Pivot Point R2 1.1472
Daily Pivot Point R3 1.1524

 

 

 

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