Key Points
- The Aussie Dollar started an upside move after correcting towards 1.0875 against the New Zealand Dollar.
- Earlier, the AUDNZD pair broke a bullish trend line with support at 1.0910 on the hourly chart.
- Recently in Australia, the RBA Interest Rate Decision (Number 2017-09), Dated 2 May 2017 was announced by the Reserve Bank of Australia.
- The result was as per the forecast, as the RBA kept the interest rates at 1.5% on 2 May 2017.
AUDNZD Technical Analysis
The Aussie Dollar traded towards 1.0940 against the New Zealand Dollar, and traded as high as 1.0935 where it faced resistance. The AUDNZD pair moved down and broke a bullish trend line with support at 1.0910 on the hourly chart.
The pair also moved below the 23.6% Fib retracement level of the last wave from the 1.0819 low to 1.0935 high.
However, the downside move found support at 1.0877 and the 50% Fib retracement level of the last wave from the 1.0819 low to 1.0935 high. The pair is once again moving higher, and likely to test the broken trend line at 1.0920-25.
RBA Interest Rate Decision
Recently in the Australia, the RBA Interest Rate Decision (Number 2017-09) was announced by the Reserve Bank of Australia. The forecast was lined up for no change in the rate from 1.5%.
The result was as per the forecast, as the RBA kept the interest rates at 1.5% on 2 May 2017. The RBA rate statement mentioned that “Inflation picked up to above 2 per cent in the March quarter in line with the Bank’s expectations. In underlying terms, inflation is running at around 1¾ per cent, a little higher than last year. A gradual further increase in underlying inflation is expected as the economy strengthens”.
Overall, the AUDNZD pair may bounce back soon, but it won’t be easy for it to break the 1.0930-35 resistance in the short term.
