FxWirePro: AUD/NZD Daily Outlook

Chart - Courtesy Trading View 

Spot Analysis:

AUD/NZD was trading 0.82% lower on the day at 1.0763 at around 10:30 GMT

Previous Week's High/ Low: 1.0947/ 1.0792

Previous Session's High/ Low: 1.0892/ 1.0849

Fundamental Overview:

The Australian dollar slipped lower across the board despite the Reserve Bank of Australia's (RBA) rate hike at the policy meeting.

The move was widely expected after Australia's inflation rose to a three-decade high last quarter.

The RBA raised the cash rate by a quarter percentage point to 3.60%  in an attempt to control inflation running at three-decade highs.

The central bank said more work needs to be done to tackle inflation and warning of further tightening. 

Australia rate futures are now pricing in RBA cash rate at 4.18%, down from 4.35% a week ago.

Technical Analysis:

- AUD/NZD plunges further into the daily cloud

- Momentum bearish, Stochs and RSI are sharply lower

- Price action rejected at 200-DMA, upside capped at 55-EMA

- GMMA indicator shows major trend is neutral, while minor trend is bearish

Major Support and Resistance Levels:

Support - 1.0727 (Lower BB), Resistance - 1.0819 (5-DMA)

Summary: AUD/NZD trades with a bearish bias. Scope for break below daily cloud.