AUD/NZD spikes lower after RBNZ’s 50bps rate hike. The development also came with the background that RBA disappointed the markets with a 25bps hike yesterday.
Technically, a short term top was in place at 1.1489 after AUD/NZD hit medium term channel resistance. But it’s still early to call for a medium term correction. As long as 55 day EMA (now at 1.1211) holds, the consolidation from 1.1489 should be relatively brief, and larger up trend should resume sooner rather than later.
However, firm break of the 55 day EMA will open up deeper correction through channel support to 1.0987, before having some support for a bounce.