The AUDNZD pair experiences selling pressure and declines to 1.0770 following the decision made by the Reserve Bank of Australia (RBA).

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• AUD/NZD faces some selling pressure and drops to 1.0770 after the Reserve Bank of Australia (RBA) decision.

The pair currently trades last at 1.07785.

The previous day high was 1.0834 while the previous day low was 1.078. The daily 38.2% Fib levels comes at 1.0813, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.0801, expected to provide resistance.

The AUD/NZD cross faces selling pressure and drops to the 1.0770 mark following the Reserve Bank of Australia’s (RBA) interest rate decision. Market players await the New Zealand employment data for fresh impetus. The cross currently trades around 1.0784, down 0.32% for the day.

The Reserve Bank of Australia (RBA) board members decided to maintain the interest rate unchanged at 4.10% at Tuesday’s August monetary policy meeting. RBA Governor Phillip Lowe remarked that the decision to keep rates intact gives the RBA more time to analyze the impact of the interest rate hikes and the economic outlook. However, more monetary policy tightening may be necessary to guarantee that inflation returns to target in a reasonable timeframe, but this will depend on the data and the developing risk assessment.

The economic data released on Monday showed that Australia’s TD Securities Inflation figure dropped to 5.4% YoY from 5.7% in June. Meanwhile, Australia’s Private Sector Credit fell to 0.2% MoM and 5.5% YoY in June, compared to 0.4% and 6.2% prior, respectively. Additionally, Australia’s Retail Sales fell 0.8% MoM, against the expectation of 0.0% and 0.7 prior. The Producer Price Index (PPI) data came in at 3.9% YoY and 0.5% QoQ.

On the Kiwi front, Statistics New Zealand revealed on Tuesday that Building Permits in June were up 3.5% MoM after a 2.23% decline in May. Earlier this week, the National Bank of New Zealand showed that July’s New Zealand ANZ Activity Outlook improved to 0.8%, above the expected 0.9% decline. Meanwhile, ANZ Business Confidence fell from -18 in June to -13.1 in July.

Looking ahead, market participants will digest the interest rate decision and statement. On Wednesday, attention will shift to the New Zealand employment data. Investors will take cues from the data and find trading opportunities for the AUD/NZD pair.

Technical Levels: Supports and Resistances

AUDNZD currently trading at 1.0782 at the time of writing. Pair opened at 1.0819 and is trading with a change of -0.34 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1.0815, 50 SMA 1.0863, 100 SMA @ 1.0796 and 200 SMA @ 1.0817.

The previous day high was 1.0834 while the previous day low was 1.078. The daily 38.2% Fib levels comes at 1.0813, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.0801, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.0788, 1.0757, 1.0734
• Pivot resistance is noted at 1.0842, 1.0865, 1.0896

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