FxWirePro: AUD/NZD extends channel breakout, RBA’s hawkish surprise boosts Aussie

Chart - Courtesy Trading View 

AUD/NZD was trading 0.38% higher on the day at 1.0895 at around 10:55 GMT, outlook strongly bullish.

The Reserve Bank of Australia (RBA) has kept the interest unchanged at 0.1% as widely expected.

Aussie buoyed across the board after the central bank’s forward guidance showed a hawkish tilt. 

The RBA dropped its ‘patient’ pledge on the inflation developments, hinting at a potential rate hike in the upcoming meetings.

RBA statement read that the Australian economy remains resilient and spending is picking up following the omicron setback.

The central bank noted that inflation has picked up and a further increase is expected. It forecast unemployment rate to fall to below 4 percent this year and to remain below 4 percent next year.

AUD/NZD is extending channel breakout. Momentum is bullish, MACD and ADX support gains. Volatility is high. 

The pair is hover around 110-month EMA resistance at 1.0894. Break above will see test of 1.10 levels.