- AUD/NZD has printed an intraday high of 1.1020 amid hawkish RBA bets.
- A breakout of the Symmetrical Triangle has pushed the cross above the 50% Fibo retracement.
- The RSI (14) has climbed above 60.00, which adds to the upside filters.
The AUD/NZD pair has printed an intraday high of 1.1020 on expectations that the Reserve Bank of Australia (RBA) will continue its policy-tightening spell ahead. RBA Governor Philip Lowe will continue hiking interest rates further amid the absence of inflation peak signs in the Australian economy.
The RBA announced a fourth consecutive 25 bps interest rate hike on Tuesday to 3.35%. While addressing the nation, RBA Governor was very confident that Australian Consumer Price Index (CPI) might decline to 4.75% this year and to around 3% by mid-2025, however, further monetary policy contraction cannot be ruled out.
AUD/NZD has delivered a breakout of the Symmetrical Triangle chart pattern formed on an eight-hour scale, which indicates an expansion in volatility and results in wider ticks and heavy volume. A breakout of the aforementioned chart pattern has pushed the cross above the 50% Fibonacci retracement (placed from September 28 high at 1.1490 to December 16 low at 1.0471) at 1.0984.
The upward-sloping trendline from December 16 low at 1.0471 will continue to act as a major support for the Australian Dollar. Also, the asset has scaled above the 20-period Exponential Moving Average (EMA) at 1.0953, which indicates that the short-term trend is bullish.
The Relative Strength Index (RSI) (14) has scaled into the bullish range of 60.00-80.00, which indicates more upside ahead.
Should the cross breaks above November 11 high at 1.1045, Australian bulls will drive the cross toward the 61.8% Fibo retracement placed around 1.1100 followed by October 26 high around 1.1176.
On the contrary, a break below January 31 low at 1.0881 will drag the cross toward January 10 low around 1.0800. A slippage below the latter will extend the downside toward January 19 low at 1.0737.
AUD/NZD eight-hour chart
-638114166296722391.png)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD climbs to 10-day highs above 1.0700
EUR/USD gained traction and rose to its highest level in over a week above 1.0700 in the American session on Tuesday. The renewed US Dollar weakness following the disappointing PMI data helps the pair stretch higher.
GBP/USD extends recovery beyond 1.2400 on broad USD weakness
GBP/USD gathered bullish momentum and extended its daily rebound toward 1.2450 in the second half of the day. The US Dollar came under heavy selling pressure after weaker-than-forecast PMI data and fueled the pair's rally.
Gold rebounds to $2,320 as US yields turn south
Gold reversed its direction and rose to the $2,320 area, erasing a large portion of its daily losses in the process. The benchmark 10-year US Treasury bond yield stays in the red below 4.6% following the weak US PMI data and supports XAU/USD.
Here’s why Ondo price hit new ATH amid bearish market outlook Premium
Ondo price shows no signs of slowing down after setting up an all-time high (ATH) at $1.05 on March 31. This development is likely to be followed by a correction and ATH but not necessarily in that order.
Germany’s economic come back
Germany is the sick man of Europe no more. Thanks to its service sector, it now appears that it will exit recession, and the economic future could be bright. The PMI data for April surprised on the upside for Germany, led by the service sector.