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The AUD/NZD surged higher and closed just below the key 1.0800 level on Tuesday, taking the pair back to a critical level not seen since September. The Reserve Bank of Australia struck a hawkish tone, and the Australian dollar received strong buying, while the New Zealand dollar struggled to rise after Monday’s Consumer Price Index (CPI) inflation came in below expectations.
Reserve Bank of Australia meeting minutes: Case for no action strengthened, risk of rising inflation a serious concern
The Reserve Bank of Australia’s latest meeting minutes paved the way for the central bank to keep interest rates higher than previously expected, pushing the Australian dollar higher, with the market firmly expecting AUD/NZD to rise.
Australia’s unemployment rate is expected to remain unchanged at 3.7% in September, with the change in job losses falling from 64,900 to 20,000 over the same period.
New Zealand’s trade balance will be released at 5:45 a.m. Beijing time in early Asian trading on Friday. New Zealand’s twelve-month trade balance (in billion New Zealand dollars) was 15.54 billion New Zealand dollars in September.
AUD/NZD Technical Outlook
AUD/NZD continued its bullish trend on Tuesday, as the pair heads towards its 50-day simple moving average, with the pair currently trading below its main support level of 1.0800. Overall buying remains in bearish territory, but only marginally, with the 200-day SMA just above 1.0820.
Although AUD/NZD closed the day with a true green bar, the pair remains firmly entrenched in its 2023 consolidation range, with AUD/NZD testing levels it has been testing for much of the year.
