AUDNZD – Support/Resistance analysis: sees downside below 1.0300 on hawkish RBNZ bets
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- AUD/NZD is expected to display significant losses after surrendering the cushion of 1.0300.
- The RBNZ is likely to announce a half-a-percent rate hike for the fourth time consecutively.
- A lower Australian Consumer Inflation Expectations print has failed to support aussie bulls.
The pair currently trades last at 1.104.
The previous day high was 1.1159 while the previous day low was 1.1006. The daily 38.2% Fib levels comes at 1.1065, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.1101, expected to provide resistance.
The AUD/NZD pair has turned sideways at around 1.0400 after a downside move from 1.0500. The asset is on the verge of printing a fresh weekly low if the kiwi bulls manage to drag the cross below the immediate support of 1.0300. A release of an upbeat Business NZ PMI has strengthened the kiwi bulls.
The Business NZ PMI data has landed at 52.7, higher than the expectations of 52.5 and the prior release of 50. This is going to delight the Reserve Bank of New Zealand (RBNZ) in its fight against inflation. Next week, the RBNZ will announce an interest rate decision in its monetary policy meeting. RBNZ Governor Adrian Orr is expected to step up its Official Cash Rate (OCR) by 50 basis points (bps) consecutively for the fourth time. An announcement of the same will elevate the OCR to 3%.
As per the Reuters survey, the RBNZ will elevate its OCR to 4.00% by mid-2023. And, the Inflation is expected to fall within the target range of 2-3% in the H1CY2023. It seems like the RBNZ’s goal of bringing price stability is visible now.
On the Aussie front, lower Consumer Inflation Expectations data has failed to support the aussie bulls. A slippage in aussie Consumer Inflation Expectations, which presents the consumer expectations of future inflation during the next 12 months will force a decline in the hawkish guidance by the Reserve Bank of Australia (RBA).
Technical Levels: Supports and Resistances
AUDNZD currently trading at 1.104 at the time of writing. Pair opened at 1.1064 and is trading with a change of -0.22 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 1.1040 |
| 1 | Today Daily Change | -0.0024 |
| 2 | Today Daily Change % | -0.2200 |
| 3 | Today daily open | 1.1064 |
The pair is trading below its 20 Daily moving average @ 1.1085, below its 50 Daily moving average @ 1.1066 , above its 100 Daily moving average @ 1.1004 and above its 200 Daily moving average @ 1.0806
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 1.1085 |
| 1 | Daily SMA50 | 1.1066 |
| 2 | Daily SMA100 | 1.1004 |
| 3 | Daily SMA200 | 1.0806 |
The previous day high was 1.1159 while the previous day low was 1.1006. The daily 38.2% Fib levels comes at 1.1065, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.1101, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 1.0994, 1.0924, 1.0841
- Pivot resistance is noted at 1.1146, 1.1229, 1.1299
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 1.1159 |
| Previous Daily Low | 1.1006 |
| Previous Weekly High | 1.1141 |
| Previous Weekly Low | 1.1006 |
| Previous Monthly High | 1.1246 |
| Previous Monthly Low | 1.0936 |
| Daily Fibonacci 38.2% | 1.1065 |
| Daily Fibonacci 61.8% | 1.1101 |
| Daily Pivot Point S1 | 1.0994 |
| Daily Pivot Point S2 | 1.0924 |
| Daily Pivot Point S3 | 1.0841 |
| Daily Pivot Point R1 | 1.1146 |
| Daily Pivot Point R2 | 1.1229 |
| Daily Pivot Point R3 | 1.1299 |
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