AUD/NZD Price Analysis: Pokes six-week-old resistance on RBA’s bond tapering plan
- AUD/NZD regains upside momentum post RBA, bulls attack key hurdles to the north.
- RBA keeps benchmark rate unchanged, surprises markets with tapering plans.
- Short-term falling trend line, 200-SMA adds to the upside filters.
- Bears need to break the weekly support line for fresh entries.
AUD/NZD bulls cheer the Reserve Bank of Australia’s (RBA) hawkish hold, up 0.10% intraday around 1.0435, heading into Tuesday’s European session.
The Aussie central bank, namely RBA, surprised global markets while marching towards the previously teased bond tapering plans despite uttering the economic challenges due to the virus-led lockdowns.
Read: RBA: Decision to extend the bond purchases reflects delay in recovery, uncertainty of Delta outbreak
Following the RBA announcement, AUD/NZD pierced a short-term resistance line, around 1.0445, before stepping back towards 1.0400. However, upbeat RSI and RBA announcements keep buyers hopeful to cross the 1.0445 nearby hurdle.
Even so, the pair’s trend change is out of sight unless the quote rises past the 200-SMA level of 1.0478. Following that, the mid-August top surrounding 1.0545 should gain the market’s attention.
Alternatively, pullback moves may remain less destructive until staying beyond the weekly support line, near 1.0410.
Following that, the yearly low marked on August 31, around 1.0335 will be the key to watch.
Overall, the AUD/NZD prices remain in the bearish trajectory despite the RBA-led upside push.
AUD/NZD: Four-hour chart
Trend: Further upside expected