AUD/NZD Price Forecast: Aussie might test support at previous highs around 1.2490
- AUD/USD pulls back to levels near 1.2520 after rallying to 13-year highs above 1.2600.
- The Kiwi plummeted across the board as the RBNZ left interest rates on hold.
- The pair has reached overbought levels at most timeframes.
The Aussie Dollar (AUD) is rallying sharply against an ailing New Zealand Dollar (NZD) on Wednesday, following an unexpected pause at the Reserve Bank of New Zealand (RBNZ) monetary policy meeting. The AUD/NZD pair, however, has reached heavily overbought levels after hitting multi-decade highs near 1.2600, and has pulled back during the Asian session, approaching the previous resistance area around 1.2490.
The RBNZ left its Official Cash Rate (OCR) unchanged at 2.75%, earlier on Wednesday, against market expectations of a quarter-point rate hike. The Kiwi Dollar plummeted across the board following the decision, to regain some ground shortly afterwards, when Governor Anna Breman hinted at further monetary tightening in December.
In Australia, Consumer Price Index (CPI) data released earlier in the day provided additional support to the Aussie, as inflation accelerated to 0.8% in September from 0.4% in August and the yearly CPI rose to 4.3%, from 4% in the previous month.
Likewise, the Reserve Bank of Australia (RBA) Trimmed Mean CPI rose to 1% from 0.8% in the quarter and remained unchanged at 3.6% from the same quarter last year. These figures add pressure on the central bank to hike rates for the fifth time this year, at next week’s monetary policy meeting.
Technical Analysis: Overbought levels suggest the posibility of a deeper correction
AUD/NZD has broken above the last seven weeks' horizontal range, but the sharp move has pushed the 4-hour Relative Strength Index (14) near 80, heavily overbought levels that often lead to some correction.
The Moving Average Convergence Divergence (MACD) histogram remains positive, suggesting that momentum is constructive in the near term. Bulls, however, have lost steam, and the pair might test support at the previous range top around 1.2490 before rallying further.
A deeper correction brings the October 21, 22, and 26 lows, around 1.2370, into focus ahead of the key support area at the 1.2275 area (September 10, October 16 lows).
On the upside, bulls are likely to be tested at session highs at 1.2609. Further up, the 127.2% Fibonacci extension of the August-September rally, at 1.2642, seems a plausible target.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
New Zealand Dollar Price Today
The table below shows the percentage change of New Zealand Dollar (NZD) against listed major currencies today. New Zealand Dollar was the strongest against the Swiss Franc.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.04% | 0.17% | -0.03% | 0.05% | -0.08% | 1.19% | 0.20% | |
| EUR | -0.04% | 0.13% | -0.07% | 0.01% | -0.13% | 1.15% | 0.16% | |
| GBP | -0.17% | -0.13% | -0.21% | -0.12% | -0.27% | 1.02% | 0.03% | |
| JPY | 0.03% | 0.07% | 0.21% | 0.08% | -0.05% | 1.22% | 0.22% | |
| CAD | -0.05% | -0.01% | 0.12% | -0.08% | -0.14% | 1.13% | 0.15% | |
| AUD | 0.08% | 0.13% | 0.27% | 0.05% | 0.14% | 1.28% | 0.29% | |
| NZD | -1.19% | -1.15% | -1.02% | -1.22% | -1.13% | -1.28% | -0.97% | |
| CHF | -0.20% | -0.16% | -0.03% | -0.22% | -0.15% | -0.29% | 0.97% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the New Zealand Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent NZD (base)/USD (quote).
Author
Guillermo Alcala
FXStreet
Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.
