#AUDNZD @ 1.12090 -imp levels: has surpassed the immediate hurdle of 1.1220 firmly amid RBNZ’s Orr speech at Jackson Hole.

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• AUD/NZD has surpassed the immediate hurdle of 1.1220 firmly amid RBNZ’s Orr speech at Jackson Hole.
• The RBNZ will announce a couple of interest rate hikes further to combat its inflation.
• The NZ economy is facing a slowdown in retail demand amid a higher inflation rate.

The pair currently trades last at 1.12090.

The previous day high was 1.1225 while the previous day low was 1.1058. The daily 38.2% Fib levels comes at 1.1162, expected to provide support. Similarly, the daily 61.8% fib level is at 1.1122, expected to provide support.

The AUD/NZD pair has breached the immediate hurdle of 1.1220 forcefully and is eyeing to recapture its yearly high at 1.1290 sooner. The cross has picked significant bids despite a hawkish tone by the Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr at the Jackson Hole Economic Symposium.

RBNZ’s Orr has highlighted the consequences of soaring pressures in his commentary. The impact of the higher inflation rate is clearly visible on NZ Retail Sales. Investors should know that the economic data landed at -2.3%, lower than the prior release of -0.5% on Thursday.

According to the context, higher price pressures should have resulted in higher Retail Sales as households needed to make more payouts to offset the increment in prices. However, the overall Retail Sales have declined, which indicates a serious slowdown in retail demand.

On the interest rates front, the RBNZ sees a couple of more rate hikes, knowing the fact that the deployment of more policy-tightening measures could slow the economy further, which has dented the sentiment of kiwi investors. However, the RBNZ is confident that inflation will be contained sooner but still watching for a meaningful decline in inflation expectations.

On the Australian front, aussie dollar has strengthened on a bumper stimulus announcement by China to bolster growth. The administration is expected to infuse one trillion Chinese Yuan (CNY) into its economy, which may also boost the Australian exports market. It is worth noting that Australia is a leading trading partner of China and growth prospects in China accelerate Australian exports significantly.

Technical Levels: Supports and Resistances

AUDNZD currently trading at 1.1216 at the time of writing. Pair opened at 1.1163 and is trading with a change of 0.47 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.1088, 50 SMA 1.1063, 100 SMA @ 1.1029 and 200 SMA @ 1.084.

The previous day high was 1.1225 while the previous day low was 1.1058. The daily 38.2% Fib levels comes at 1.1162, expected to provide support. Similarly, the daily 61.8% fib level is at 1.1122, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.1073, 1.0982, 1.0905
• Pivot resistance is noted at 1.124, 1.1316, 1.1407

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