- RBNZ’s dovish statement disappointed Kiwi buyers.
- The US-China trade developments will be watched next.
AUD/NZD is on bids around 1.0430 during early Wednesday. The pair rallied 130 pips to the days high near 1.0440 after the Reserve Bank of New Zealand (RBNZ) favored future rate cuts. Investors may now concentrate on the US-China trade deal to determine near-term trade sentiment.
During initial Wednesday, the AUD/NZD was trading southwards after reports revealed Nomura expects two rate cuts from the Reserve Bank of Australia (RBA).
However, those moves couldn’t last long as the RBNZ disappointed Kiwi buyers with statements like “next rate move is likely down”.
The New Zealand central bank didn’t offer any changes to its official cash rate (OCR) during Wednesday’s monetary policy decision.
With China being one of the largest consumers of both Australia and New Zealand, developments surrounding the US-China trade deal will gain major attention amid lack of data/events from either the AU or NZ.
Off-late chances are favoring a trade deal between the world’s two largest economies, which in turn could help AUD more as China is Australia’s largest consumer while New Zealand has the dragon nation on second place.
AUD/NZD Technical Analysis
Successful break of five-week long descending trend-line needs to be validated by the 50-day simple moving average figure of 1.0435 in order to push the AUD/NZD pair further up towards 1.0490 and 100-day SMA level of 1.0510.
Meanwhile, failure to hold recent uptick could drag the quote back to 1.0330 and 1.0270 supports.
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