#AUDNZD @ 1.07278 slump pips as RBA announces no rate increase after lifting the rates in the last 10 consecutive times. (Pivot Orderbook analysis)

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• AUD/NZD slump pips as RBA announces no rate increase after lifting the rates in the last 10 consecutive times.
• NZIER criticizes RBNZ’s rate hike, suggesting likely signals of policy pivot and AUD/NZD rebound in future.
• RBNZ is expected to announce 0.25% rate hike on Wednesday.
• Lowe’s comments on RBA’s future path, RBNZ announcements will be crucial for clear directions.

The pair currently trades last at 1.07278.

The previous day high was 1.0792 while the previous day low was 1.0682. The daily 38.2% Fib levels comes at 1.075, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.0724, expected to provide support.

AUD/NZD initially plummeted to 1.0738 on the Reserve Bank of Australia’s (RBA) interest rate pause before recently picking up bids to 1.0760 during early Tuesday.

In doing so, the exotic pair marks the bear’s dominance as the Aussie central bank pauses its rate hike trajectory after lifting the benchmark rates in the last 10 consecutive meetings.

Also read: Breaking: RBA steers rates on a steady course at 3.60% in April, as expected

Apart from the RBA moves, the challenges to sentiment emanating from China and inflation fears, as well as the Reserve Bank of New Zealand’s (RBNZ) likely rate hike, also seems to weigh on the AUD/NZD prices.

That said, the US-China tension is back on the table as Beijing keeps reiterating its dislike for the US-Taiwan ties but Washington seems to ignore it. On the same line could be the comments from Russian Foreign Minister Sergei Lavrov raised fears of escalating Moscow-Brussels tussle by saying, “The European Union (EU) has “lost” Russia.”

Against this backdrop, the S&P 500 Futures struggle for clear directions after Wall Street closed mixed whereas the US 10-year and two-year Treasury bond yields remain inactive around 3.42% and 3.98%.

Earlier in the day, the latest New Zealand Institute of Economic Research (NZIER) Quarterly Survey of Business Opinion (QSBO) signaled that the RBNZ tightening looks to be gaining traction in dampening demand. Hence, te

Having witnessed the initial reaction to the RBA’s Interest Rate Decision, AUD/NZD traders may wait for RBA Governor Philip Lowe’s comments, scheduled for early Wednesday, before portraying any further moves. Additionally important will be the RBNZ announcements as the New Zealand central bank’s rate hikes have recently gained criticism. Even so, the Auckland-based bank is up for a 0.25% rate hike and may weigh on the AUD/NZD if skipping any dovish remarks in the policy statements.

Unless breaking a three-week-old descending resistance line, surrounding 1.0800, the AUD/NZD pair remain on the bear’s radar.

Technical Levels: Supports and Resistances

AUDNZD currently trading at 1.0761 at the time of writing. Pair opened at 1.0776 and is trading with a change of -0.14% % .

The pair is trading above its 20 Daily moving average @ 1.0735, below its 50 Daily moving average @ 1.086 , below its 100 Daily moving average @ 1.0801 and below its 200 Daily moving average @ 1.0967

The previous day high was 1.0792 while the previous day low was 1.0682. The daily 38.2% Fib levels comes at 1.075, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.0724, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.0708, 1.064, 1.0598
• Pivot resistance is noted at 1.0818, 1.086, 1.0928

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