AUD/NZD Price Analysis: Breaks seven-week-old support on hawkish RBNZ

AUD/NZD marks the heaviest daily loss since late May as RBNZ hints at tapering.
Clear U-turn from 200-DMA, bearish MACD and downside break of short-term key support also favor bears.

Anil Panchal FXStreet

AUD/NZD slumps around 70 pips to recently around 1.0640, down 0.74% intraday, following the RBNZ meeting on early Wednesday. In doing so, the cross-currency pair drops the most since May 26 while breaking a nearby ascending support line, now resistance.

RBNZ announces tapering of bond purchases during late July while matching wide market expectations of no rate hike in its latest monetary policy update.

Read: Breaking: RBNZ leaves official cash rate unchanged at 0.25% as expected

Given the MACD turning most bearish in nearly two months, the trend line breakdown and sustained U-turn from 200-SMA directs AUD/NZD towards the May month’s low surrounding 1.0600 threshold.

It should, however, be noted that the quote needs to close below the late February’s low of 1.0638 to aim for 1.0600, else a corrective pullback towards the previous support line near 1.0665 can’t be ruled out.

In a case where the AUD/NZD prices remain weak below 1.0600, the yearly low marked in February around 1.0540 will be the key to watch.

Meanwhile, corrective pullback beyond the recently broken support line, around 1.0665, will again aim for a 200-SMA level of 1.0734. Though, the bulls are less likely to be convinced until the pair rises past June 28 top surrounding 1.0770.

AUD/NZD: Four-hour chart

Trend: Further downside expected

Additional important levels

Overview
Today last price	1.0653
Today Daily Change	-0.0066
Today Daily Change %	-0.62%
Today daily open	1.0719

Trends
Daily SMA20	1.0735
Daily SMA50	1.0739
Daily SMA100	1.0767
Daily SMA200	1.072

Levels
Previous Daily High	1.0753
Previous Daily Low	1.0694
Previous Weekly High	1.075
Previous Weekly Low	1.0617
Previous Monthly High	1.0817
Previous Monthly Low	1.0622
Daily Fibonacci 38.2%	1.073
Daily Fibonacci 61.8%	1.0717
Daily Pivot Point S1	1.0691
Daily Pivot Point S2	1.0663
Daily Pivot Point S3	1.0632
Daily Pivot Point R1	1.075
Daily Pivot Point R2	1.0781
Daily Pivot Point R3	1.0809

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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