The Australian dollar rose sharply higher against its OZ counterpart on Tuesday, driving AUD/NZD to fresh three-day highs near 1.0680 area, after the Aussie was boosted on RBA’s status-quo.
Currently, the AUD/NZD pair trades 0.76% higher at fresh session highs of 1.0681, recovering daily lows struck at 1.0542 in last hours. The AUD/NZD cross staged a solid comeback and extends higher, as the Australian dollar was boosted across the board after the RBA left its interest rates on hold while acknowledging improved economic conditions.
While the NZD/USD pair is seen trading with mild gains and appears to cap further upside in the AUD/NZD cross. Last week, RBNZ also made no changes to its monetary policy settings and remained in a wait-and-see mode.
Looking ahead, traders turn their attention towards Wednesday’s macro calendar as nothing relevant is on the cards for today. Tomorrow’s NZ employment data and Australian retail sales and trade data will be closely watched for further momentum.
AUD/NZD Technical Levels
To the upside, the next resistance is located at 1.0694/ 1.0700 (Oct 29 High/ round number) levels and above which it could extend gains to 1.07481 (Oct 26 High). To the downside immediate support might be located at 1.0542 (Today’s Low) below that at 1.0500 (round number).