AUD/NZD Price Analysis: Slips below 1.0100 on New Zealand coronavirus package
- AUD/NZD remains on the back foot near the record low flashed the previous day.
- New Zealand government announced additional stimulus worth of 4.0% of GDP after Monday’s surprise rate cut from the RBNZ.
- RBA minutes failed to offer any major clues concerning Thursday’s likely move.
- 50-HMA, short-term falling trend line restricts the pair’s recovery moves.
Having witnessed another effort from New Zealand (NZ) to counter negative implications from the coronavirus (COVID-19), AUD/NZD drops further below 1.0100, currently down 0.50% to 1.0073, during early Tuesday.
The NZ government allocated 4.0% of the GDP, near 12.1 billion New Zealand dollars, to ward off the virus after the RBNZ surprised markets with a 0.75% rate cut the previous day.
It’s worth mentioning that the RBA minutes for March, announced at 00:30 GMT, reiterated the bearish bias among the policymakers but failed to offer any major Aussie moves.
Following the news, AUD/NZD declines further towards Monday’s low of 0.9924. However, 1.0000 psychological magnets may off an intermediate halt during the declines.
On the upside, a downward sloping trend line since March 09, 2020, as well as 50-Hour Simple Moving Average (HMA), restricts the pair’s short-term recoveries near 1.0190.
Also questioning the pullback beyond 1.0190 will be 200-HMA level close to 1.0350.
AUD/NZD hourly chart
Trend: Bearish
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
