AUD/NZD Price Analysis: 13-day-old resistance tests buyers despite RBA’s 0.50% rate lift
- AUD/NZD retreats from intraday high, short-term key resistance line after the RBA’s rate increase.
- RBA matches wide market expectations of announcing a 50 bps rate hike.
- Steady RSI, bullish MACD signals keep buyers hopeful, 50-day EMA restricts immediate downside.
AUD/NZD tracks other Australia dollar (AUD) pairs while failing to cheer the RBA’s 0.50% rate hike during early Tuesday morning in Europe. In doing so, the cross-currency pair steps back from a two-week-old descending resistance line of late.
Reserve Bank of Australia (RBA) matched wide market expectations by announcing 50 basis points (bps) rate hike during its third attempt to battle inflation. That said, the benchmark rate rises to 1.35% after the rate increase.
Even if the quote eased back from the immediate resistance line near 1.1070, the steady RSI and bullish MACD signals keep AUD/NZD buyers hopeful until the pair stays beyond the 100-day EMA level of 1.0920.
However, a pullback towards the 50-day EMA level of 1.1000 can’t be ruled out.
In a case where the AUD/NZD pair drops below the 100-day EMA, the downward trajectory can aim for the 61.8% Fibonacci retracement (Fibo.) of March-May upside, around 1.0830, appear more likely.
On the contrary, a clear upside break of the 1.1070 resistance line can quickly trigger the run-up towards June’s peak of 1.1180.
Following that, the yearly high marked in May at around 1.1195 could lure the AUD/NZD bulls.
AUD/NZD: Daily chart
Trend: Further upside expected