Audnzd Holds On To Gains

 Audnzd Holds On To Gains

Aud/Nzd Holds On To 1.0720-1.0730 Area Post-Rba

AUD/NZD jumped higher and registered a +30 pips gain after the policy decision from the RBA. The pair was seen near the 1.0700 handle with a downward bias.

The RBA decision allowed the AUD/NZD to recover most of its daily losses as it trades with a +0.20% gain on the daily timeframe. Despite a bit of upside, the trading range of AUD/NZD is still in the familiar range (1.0700 - 1.0730).

Even if we keep the AUD/NZD pair aside for a moment, it looks like AUD has been gaining ground across the board. This was expected as the RBA maintained its hawkish stance with no timeline for a rate cut.

The RBA hinted at more rate hikes if needed instead of a rate cut. With an interest rate of 4.1%, the AUD appears to be in a good position against the NZD, USD, & other currencies.

Besides the rate decision, the RBA shared forecasts for economic growth this year (2024) and 2025. According to them, the GDP and inflation will likely slow down in the next two years.

In 2024, the Australian economy will grow at an annual rate of 1.8%. Similarly, the inflation in Australia will be 3.2% in 2024, according to the forecast.

For 2025, the RBA has set a growth rate of 2.0% with an inflation target of 3.5%. So, if we look at the RBA forecasts, they anticipate an uptick in inflation during 2025.

Technical analysis shows that AUD/NZD staged a pullback, which has led to the double top formation on the D1 chart. The AUD/NZD also needs help finding a spot above the 200 SMA on the daily chart.

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