AUD/NZD Technical Analysis: Nosedives to 13-day low after RBNZ’s rate decision
- AUD/NZD plunges as RBNZ beat market expectations of a 0.25% rate cut with no change in OCR.
- 100-day EMA can offer immediate support before the key 1.0635/30 support confluence.
- 1.0850 becomes a challenge for buyers.
With the RBNZ’s refrain from respecting the market consensus of a rate cut, AUD/NZD slumps to the low of 1.0677, before trading around 1.0690, by the press time of early Wednesday.
The Reserve Bank of New Zealand (RBNZ) fails to respect broad forecasts of a 0.25% cut to its Official Cash Rate (OCR) during the November month monetary policy meeting. In a reaction, the New Zealand dollar (NZD) surges across the board and the AUD/NZD pair doesn’t become an exception.
100-day Exponential Moving Average (EMA) level of 1.0667 can offer immediate support to the pair ahead of highlighting 1.0635/30 support confluence that comprises 200-day EMA and 38.2% Fibonacci retracement of August-November upside.
Should prices dip below 1.0630 on a daily closing basis, August 126 low of 1.0530 will be bear’s favorite.
Alternatively, buyers will stay away unless witnessing a daily closing beyond 1.0850. However, the pair’s pullbacks to 1.0750 can’t be denied.
AUD/NZD daily chart
Trend: Pullback expected
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.
