AUDNZD testing larger timeframe resistance after RBNZ

The draw back within the NZD continues after the shock dovish shift from the RBNZ.

It is an eye-watering transfer for the AUDNZD, with the pair now testing the subsequent main resistance hurdle at 1.1030 (which is the highs from March).

The catalyst was the extra dovish RBNZ the place the financial institution determined to decrease their OCR projections, and the minutes revealed a transparent dovish bias with the committee actively debating between a 25bp or 50bp reduce.

The bulk opted for a cautious 25bp step (however two voted for a 50bp reduce), and left the door open for extra easing if inflation continues to ease. The dialogue of serious spare capability and dangers to consumption additionally underscored extra draw back dangers to development.

Fairly shocking to see that given the current knowledge we have seen has not been practically as unhealthy as the choice makes it appear.

This text was written by Arno V Venter at investinglive.com.