AUD/NZD Price Analysis: Finds demand around 1.0950 ahead of RBA’s policy statement
- AUD/NZD is struggling to shift business above 50% Fibo retracement at 1.0982.
- The 20-and 200-period EMAs have delivered a bull cross at 1.0909, which adds to the upside filters.
- A release of the RBA’s monetary policy statement will trigger a power-pack action.
The AUD/NZD pair has attempted a recovery after testing Thursday’s low around 1.0950 in the Asian session. The cross is aiming to extend its recovery further, however, investors have shifted to the sidelines ahead of the release of the monetary policy statement by the Reserve Bank of Australia (RBA). The RBA monetary policy statement will provide cues about likely policy action ahead in March.
Apart from that, China’s Consumer Price Index (CPI) (Jan) will be keenly watched. The annual inflation rate is expected to increase to 2.2% vs. the former release of 1.8%.
AUD/NZD is struggling to shift its auction above the 50% Fibonacci retracement (placed from September 28 high at 1.1490 to December 16 low at 1.0471) at 1.0982 on the daily chart. The upward-sloping trendline from December 16 low at 1.0471 will act as a major support for the Australian Dollar.
The 20-and 200-period Exponential Moving Averages (EMAs) have delivered a bull cross at 1.0909, which adds to the upside filters.
However, the Relative Strength Index (RSI) (14) is struggling to shift confidently into the bullish range of 60.00-80.00.
Going forward, an upside move above February 1 high at 1.0994 will drive the cross towards February 8 high at 1.1036 followed by October 28 high at 1.1081.
On the flip side, a break below January 27 low at 1.0940 will drag the asset toward the round-level support at 1.0900. A slippage below the latter will expose the cross for more downside toward January 23 high at 1.0853.
AUD/NZD daily chart
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Author
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
