FxWirePro: AUD/NZD extends bounce off trendline support, re-tests daily cloud
Chart - Courtesy Trading View
AUD/NZD is extending bounce off major trendline support. The pair spikes higher for the 3rd consecutive session, tests daily cloud resistance at 1.0445, break above will fuel further gains. AUD/NZD was trading 0.51% higher on the day at 1.0443 at around 08:15 GMT.
Kiwi depressed after Reserve Bank of New Zealand (RBNZ) disappointed markets with smaller-than-expected interest rate hike.
RBNZ hiked its interest rate to 0.75% and raised its long-term cash rate projection by 50 bps. Investors had expected a bigger hike and long-term cash rate projection from the central bank
Following the RBNZ event, the New Zealand dollar plunged across the board and interest rate swaps reversed sharply.
Data released earlier today showed Australia Construction Work Done (QoQ) for Q3 printed at -0.3%, bettering estimates at -3.1%, but lower than the previous quarter's 0.8%.
- GMMA shows bullish shift on the intraday charts
- Price action has broken above 55-EMA resistance
- The pair has broken above 200H MA, 5-DMA has turned north
- RSI is above 50, bias higher, Stochs are showing a bullish rollover from oversold levels
Support levels - 1.0428 (55-EMA), 1.04 (21-EMA)
Resistance levels - 1.0445 (cloud base), 1.0482 (110-EMA)
Summary: AUD/NZD technical bias has turned bullish on the intraday charts. Cloud breakout will change near-term dynamics.