AUD/NZD rises strongly today after RBA kept interest rate unchanged at 1.50%, even though some expected a cut. Technically, strong support was seen at 55 day EMA. The development suggests that fall from 1.0731 is merely a correction and has completed at 1.0516. Further rise should now be seen back to 1.0731 resistance. Decisive break will resume whole rise from 1.0107 . In that case, 61.8% retracement of 1.1175 to 1.0107 at 1.0767.
The above mentioned will very much depends on RBNZ deliver it’s widely expected rate cut tomorrow. Major economic indicators since the last meeting weakened. In particular, disappointing employment report and inflation in the first quarter appear to have increased the odds of a rate cut this week. We’ll know shortly. More on RBNZ in RBNZ Preview – Chance of Rate Cut Increases as Job Market and Inflation Disappoint.
