Forex Marketz Daily Forex News – Fully Markets Update
Looking at the widely traded commodity linked currency exchange rate, the AUD/NZD, the Australian dollar inched up to 1.8020 before falling back to 1.0773 during the Asian trade session on Wednesday. Forex traders were reacting mainly to the monetary policy and interest rate decision from the Reserve Bank of New Zealand (RBNZ).
This morning, the Reserve Bank of New Zealand, as expected, left monetary policy, their monthly asset purchase program and overnight cash rate (OCR) as is. The RBNZ left their monthly asset purchases at NZ$ 100 billion per month as their economic outlook remains uncertain. The central bank also said that prolonged monetary stimulus is necessary and left the door open for a rate cut if needed.
The RBNZ also commented that inflation as well as labor goals will not be met for an extended period thanks to the ongoing global coronavirus pandemic (Covid-19). The Reserve Bank of New Zealand has also completed operations into long term usage of ultra-low rates and accommodative monetary policy.
This news capped the Australian dollar as the New Zealand dollar crawled its way back.
Daily Australian Dollar Technical Analysis (AUD/NZD)
Looking at the above AUD/NZD MT price action chart, price action is trading around 1.07638 after hitting an intra-day high price point of 1.8020. The Australian dollar is trading below the rising trend line in play since 9 February.
Forex traders should also note that the MACD momentum indicator looks bearish as the AUD/NZD Forex market looks ready to challenge the two hundred (200) hour simple moving average in play at 1.0727. A daily close below 1.0727 opens the door to challenge the monthly low price point at 1.0540 next.
On the upside, a daily close above the rising trend line at 1.0790 opens the door to challenge the 20 January high price point in play at 1.0845. The next layer of technical resistance lines up at the October 2020 high price point at 1.0910 with the round number of 1.10 then coming into play.
