- RBA’s Lowe cited downside risk to incoming data while highlighting probabilities for June rate cut.
- 1.0520/15 might hold the declines confined, as it has been since early-April.
With the failure to cross 1.0600 round-figure joining dovish comments from the Reserve Bank of Australia’s (RBA) Governor Stephen Lowe, AUD/NZD drops to 1.0565 ahead of the European open on Tuesday.
The quote now signals brighter chances to revisit the 1.0520/15 horizontal area comprising early-April high and mid-May lows, a break of which can extend its downturn towards 1.0500 and 1.0470 rest-points.
During the pair’s decline under 1.0470, 61.8% Fibonacci retracement of its March to April upside, at 1.0450, seems crucial for sellers as it holds the gate for further south-run to 1.0400 and 1.0370 supports.
Alternatively, an upside clearance of 1.0600 may propel the pair to confront 23.3% Fibonacci retracement level near 1.0630 whereas 1.0670 might question buyers afterward.
Given the pair’s extended rise beyond 1.0670, 1.0700 and April month high around 1.0735 could be bull’s favorites.
AUD/NZD 4-Hour chart
Trend: Mild downturn expected
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