AUD/NZD set to challenge 1.09 as RBA reveals no new surprises
- Aussie maintains its composure following a typical RBA release.
- Dovish RBA does little to shake awake NZD bulls who are sidelined until Thursday's government budget.
The AUD/NZD is continuing to lift in early Tuesday action, trading near the 1.0900 major handle.
RBA minutes: More likely next cash rate move is up rather than down
The Reserve Bank of Australia (RBA) dropped their latest round of Meeting Minutes on markets, and delivered little new news for traders. The central bank still sees rates remaining low for an indeterminant amount of time, citing low wage growth and retail competition in sales prices hobbling inflation, and still expect the next rate move to be "likely" up instead of down. The AUD/NZD twitched slightly higher on reaction, and moved back into the day's highs just beneath the 1.0900 major level.
New Zealand's government budget release on Thursday has Kiwi bulls sidelined for the time being, and Global Dairy Auction Prices due sometime today are unlikely to move rates very far as traders await government spending figures to determine the near-term health of New Zealand's economy before making a move.
AUD/NZD levels to watch
The pair has broken above the 200-day SMA for now, reaching into new three-month highs, and a successful clearing of the 1.0900 handle put the pair on pace to challenge January's highs near 1.1070, though a bearish correction from here could see thew pair fall back under a long-term trendline from October 2017's high at 1.1290, and little support remains nearby, with the 50-day EMA at 1.0700, with May's low nearby at 1.0650.