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  • AUD/NZD testing the 200-HMA as bears take back control.  
  • Central banks in focus, both RBA and RBNZ weigh  weaker economic growth.

AUD/NZD has been testing the 200-hour moving average in the open today, sliding from a high of 1.0744 to a low of 1.0722 in a bearish scenario  from on a technical basis, albeit deriving some support on the basis of a less dovish Reserva Bank of Australia.  

Eyes on RBA and RBNZ’s next move

However, there was little reaction to RBA governor Lowe’s upbeat tone from the IMF meetings in Washington DC but pricing for a Nov rate cut was lower than as of late Thursday, which helps AUD.

The Reserve Bank, Philip Lowe, said: “Negative interest rates are extraordinary unlikely in my country”, further cement the conclusion that the RBAsees the ELB in positive territory and, most likely, above zero. With respect to recent data, the underemployment rate fell from 8.53% to 8.35% which should be will be sufficient to avert another rate cut. As for the Reserve Bank of New Zealand, the  RBNZ  likely consider weaker economic growth outlook and the risk of inflation expectations slipping.

AUD/NZD  levels