AUD/NZD remains above weekly 200-MA after RBA

AUD/NZD cross briefly dipped to a low of 1.0745 before making a quick recovery above 1.0859 (weekly 200-MA) after the RBA kept interest rates unchanged and maintained its neutral stance. 

Rejected at 61.8% fib expansion

The bullish momentum in the cross ran out of steam at 1.0877, which is 61.8% Fib expansion of 1.0326-1.0748-1.0616. Major part of the gains witnessed in the last few days, including today have been fuelled by the decline in the NZD/USD pair. 

Meanwhile, AUD has surprisingly remained resilient despite the pullback in the iron ore and gold prices.  

The focus now is on the NZ GDT auction. Analysts are forecasting a fall of as high as 7pc in prices at this week’s Global Dairy Trade (GDT) on the back of weak dairy futures trading.

AUD/NZD Technical Levels

A daily close above 1.0859 (weekly 200-MA) would expose 1.0971 (Jan 2016 high) and 1.10 (zero figure) levels. On the other hand, a breakdown of support at 1.0829 (session low) could yield a pullback to 1.0786 (5-DMA) and 1.0766 (Mar 1 high).