AUD/NZD moves towards the 100-day moving average
The RBNZ decision and statement earlier has helped to spark some life across NZD pairs, and that has seen AUD/NZD move higher in a bid to reclaim a bullish bias on the daily chart.
Post-RBNZ buying sees the pair reach a high of 1.0767 on the day, just shy of the 100-day MA (red line) @ 1.0771. That will be the next key level to eye for any move to the upside in the pair now.
Buyers will have to break above that to continue the recent momentum towards the next key resistance levels at the 50.0 retracement level @ 1.0826 and the 200-day MA (blue line) @ 1.0883. A break of the latter will be key as it would open up a fresh bullish bias that could take the pair towards 1.1000 and above once again.
Though the RBNZ sounded more dovish than expected and that should continue to weigh on the NZD a little, the issue for the pair is that the AUD itself is struggling no matter what the situation in the market is it seems. Year-to-date, the AUD is still the worst performing currency among the major bloc down by 4.52% against the USD.
So, while NZD may be set for further pain down the road, upside in the pair could be very well capped by the struggles faced by the AUD.