AUD/NZD drops below 1.0470 after initially rallying 40 pips on RBNZ

• RBNZ met market expectations of no rate cut.
• RBNZ signaled the need for a future reduction in the OCR.
• Upbeat comments for domestic GDP might have lured the sellers.

Having initially popped by near 40 pips, the AUD/NZD now declines to 1.0467 after the Reserve Bank of New Zealand (RBNZ) announced no change into its present monetary policy during early Wednesday.

Traders might have emphasized comments from the rate statement that says “while global economic conditions had deteriorated, the Committee noted that domestic GDP growth had held up more than projected in the March 2019 quarter.”

Ahead of the announcement, market consensus favored no rate change announcements from the RBNZ. However, a dovish appearance and signals for a second rate cut of 2019 in August were largely anticipated.

While RBNZ is already out and loud, and there prevails no fresh data left for publishing from either Australia or New Zealand, global trade tussles will provide a fresh impulse to the pair traders.

While China and the US are less likely to announce any breakthrough during their much awaited G20 meet, latest trade tussle between the China and Canada might give an opportunity to the US President Donald Trump to take over his twitter handle and support Canada after the nation recently promised to help the US with the rare earth metals.

Technical Analysis

The quote needs to regain its stand beyond 100-day moving average (100-DMA), at 1.0507 now, in order to aim for 1.0550 and 200-DMA level of 1.0589, if not then chances of its extended south-run to 1.0450 and 1.0400 levels can’t be ruled out