FxWirePro: AUD/NZD breaks below 200-week MA, more downside on cards

AUD/NZD chart - Trading View 

AUD/NZD was trading 0.59% lower on the day at around 1.0650 at 08:40 GMT, kiwi buoyed after hawkish RBNZ.

The pair is extending break below 200-DMA and is on a bearish streak for the 4th straight session.

Reserve Bank of New Zealand left its interest rate unchanged as was widely expected and delivered a major hawkish surprise to markets by signaling rate hikes from mid-2022. 

The central bank  re-introduced the conventional OCR forecast (it had been replaced by the unconstrained OCR forecast), and by the forecast pace of tightening.

The OCR forecast showed a 150bps tightening between Q3 2022 and Q3 2024, taking the markets by surprise.

GMMA indicator shows major trend is neutral while minor trend has turned bearish. Volatility is rising as evidenced by widening Bollinger bands.

Price action has dipped below 200-week MA and oscillators are strongly bearish. MACD and ADX support weakness.

The pair is holding minor support at 26th Feb lows at 1.0639, break below will see test of Feb 3rd low at 1.0540.