AUD/NZD trims losses, regains 1.0800 post-RBA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 1, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The bearish pressure around the AUD eased a bit following RBA’s rates on-hold stance, now pushing AUD/NZD back above 1.08 handle.

    AUD/NZD catches fresh bid

    Currently, the AUD/NZD pair trades 0.27% lower at 1.0806, bouncing-off daily lows reached at 1.0766 immediately after RBA decision. The Australian dollar pared losses and recovered ground against its OZ neighbour, after the RBA left the cash rate on-hold at 2.0%, while noted that the AUD level is adjusting to the evolving economic outlook.

    However, the cross remains under pressure on the back of the weak Chinese economic data as well as dismal Aus trade and building consents data. While a renewed bout of buying interest seen in the Kiwi, also contributed to the ongoing weakness in AUD/NZD.

    Meanwhile, markets will continue to assess the latest RBA policy decision and now look forward to the NZ GDT dairy auction results due later today for further direction on the cross.

    AUD/NZD Levels to watch

    The pair finds the immediate resistance at 1.0851/58 (daily pivot/ Feb 29 High) above which gains could be extended to the next hurdle located at 1.0900 (200-DMA). On the flip side, the immediate support located at 1.0779/66 (100-DMA/ daily low). Selling pressure is likely to intensify below the last, dragging the Aussie to 1.0738/31 (Feb 25 & 22 Low).
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