FxWirePro: AUD/NZD rejected at daily cloud, slumps for the second straight session

Chart - Courtesy Trading View 

AUD/NZD was trading 0.37% lower on the day at 1.0336 at around 10:30 GMT, after closing 0.62% lower in the previous session.

Reserve Bank of New Zealand (RBNZ) posted sharp inflation expectations numbers on Thursday, stoking rate hike expectations.

The RBNZ has posted the country's inflation expectations to 3.7%, the highest since 2010. The central bank targets to keep inflation between 1% to 3%, with a central target of 2%.

Markets are pricing in a 25-bps rate hike at each RBNZ meeting, making it an aggressive rate hike cycle compared to any major central bank.

Price action was rejected and daily cloud and 21-EMA resistance, near-term outlook is bearish.

Momentum indicators are bearish. Stochs and RSI are sharply lower. RSI is well below the 50 mark.

Price action is below major moving averages and moving averages are trending lower. Volatility is high.

AUD/NZD on track for further downside. The pair finds immediate support at 1.0330 (trendline), breach below will see dip till 1.0280 (yearly low).