AUD/NZD surges sharply in Asian session, buoyed by the combined effects of more hawkish RBA minutes and the disappointing New Zealand inflation numbers. This series of events has led to heightened speculation of another interest rate hike by RBA come November, while RBNZ is more likely opt to hold their stance.
The strong break of 1.0720 resistance confirms short term bottoming in AUD/NZD . More importantly, fall from 1.1050 could have completed with three waves down to 1.0620 too. Immediate focus is on 55 D EMA (now at 1.0773). Sustained trading above there will strengthen this case and target 1.0914 resistance and above. In case of retreat, risk will now stay on the upside as long as 1.0620 support holds.
In the bigger picture, price actions from 1.0469 (2022 low) could still be interpreted as consolidation to the down trend from 1.1489 (2022 high). Thus, strong resistance could be seen in AUD/NZD as it enters into resistance zone of 1.0914/1.1050.
