AUD/NZD recovers more-than half of RBNZ-led slide

The cross in the AUD/NZD staged a solid rebound from RBNZ-led sell-off, although the recovery appears to lose steam above the mid-point of 1.06 handle.

AUD/NZD recovers 1-big figure post-RBNZ

The AUD/NZD pair now drops -0.44% to 1.0651, having faced fresh offer near 1.0670 region. The cross in the AUD/NZD fell to fresh six-day lows at 1.0550 after the NZD/USD pair rallied almost 250-pips in a knee-jerk reaction to RBNZ’s rate cut decision. In spite of the RBNZ slashing rates by 25bps to 2%, the Kiwi spiked higher as markets had expected the NZ central bank to lower rates by 50bps.

The recovery in the cross is also helped by a better tone seen around the AUD/USD pair, as European stocks turn positive amid oil-price recovery. Looking ahead, both the AUD and NZD are expected to be heavily impacted by the Chinese macro releases ahead of the US retail sales and PPI data due for release tomorrow.

AUD/NZD Technical Levels

To the upside, the next resistance is located at 1.0691 (5-DMA) and above which it could extend gains to at 1.0772 (200-DMA).To the downside immediate support might be located 1.0550 (post-RBNZ low) below that at 1.0483 (Aug 3 low).