AUD/NZD holds below 1.1000 following RBA rate decision

Source Fxstreet
May 7, 2024 05:34
  • AUD/NZD loses traction 1.0990 in Tuesday’s early European session.
  • The RBA held the Official Cash Rate (OCR) unchanged at 4.35% at its May meeting on Tuesday, as widely anticipated. 
  • The RBNZ is expected to delay any shift toward monetary easing until 2025 due to elevated inflation pressures in Q1.

The AUD/NZD cross attracts some sellers near 1.0990 on Tuesday during the early European session. The cross edges lower after the Reserve Bank of Australia (RBA) decided to hold the interest rate unchanged at 4.35% at its May meeting, but offered a less hawkish tone than the March statement. Investors await the RBA Press Conference for fresh catalysts. 

As widely expected, the Australian central bank left the Official Cash Rate (OCR) unchanged at 4.35% for the fourth meeting in a row on Tuesday. The statement noted that inflation in Australia is easing, but remains high. Therefore, the board expects that it will be some time yet before inflation will move sustainably within the target range. The RBA further stated that the economic outlook remains uncertain and that the central bank will not rule anything in or out on future decisions. The Australian Dollar (AUD) faces some selling pressure following the monetary policy meeting as the RBA did not deliver as much hawkish bias as the market expected. 

On the Kiwi front, the Reserve Bank of New Zealand (RBNZ) kept its cash rate unchanged at 5.5% for the sixth consecutive meeting last month and emphasized that restrictive monetary policy was necessary to further reduce capacity pressure and bring down inflation. The RBNZ also signaled its intention to delay any shift toward monetary easing until 2025 due to elevated inflation pressures in the first quarter. This, in turn, might provide some support to the New Zealand Dollar (NZD) and might cap the upside of the AUD/NZD cross. 

AUD/NZD

Overview
Today last price 1.0996
Today Daily Change -0.0030
Today Daily Change % -0.27
Today daily open 1.1026
 
Trends
Daily SMA20 1.0942
Daily SMA50 1.0858
Daily SMA100 1.0793
Daily SMA200 1.0799
 
Levels
Previous Daily High 1.1027
Previous Daily Low 1.0989
Previous Weekly High 1.1028
Previous Weekly Low 1.0958
Previous Monthly High 1.1012
Previous Monthly Low 1.0857
Daily Fibonacci 38.2% 1.1013
Daily Fibonacci 61.8% 1.1004
Daily Pivot Point S1 1.1001
Daily Pivot Point S2 1.0976
Daily Pivot Point S3 1.0963
Daily Pivot Point R1 1.1039
Daily Pivot Point R2 1.1052
Daily Pivot Point R3 1.1077

 

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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