AUD/NZD attempting gains for third straight day

AUD/NZD is up in Asia attempting gains for the third straight day after RBA offered little surprise, while NZD is feeling the heat of RBNZ rate cut expectations.

Eyes Trend line resistance

The cross appears on track to test resistance of the daily falling trend line drawn from April 25 high to July 19 high. The bid tone around Aussie remains strong after RBA quarterly statement on monetary policy offered little surprise. Moreover, the central bank reiterated that it foresees slow path to inflation target. Meanwhile, Kiwi is under pressure as markets expect RBNZ to cut rates next week.

The cross was last seen trading around 1.0645 levels. The pair bottomed out at 1.0436 on Aug 2.

AUD/NZD Technical Levels

Breach of the trend line resistance at 1.0666 would open doors for 1.07, above which the cross could target 1.0771 (July 19 high). On the other hand, a breakdown of support at 1.0619 (daily low) would expose 1.0588 (previous day’s low). A violation there could yield 1.0548 (June 15 high).