AUD/NZD supported above 1.0400

FXStreet (Mumbai) - The Australian dollar trades almost unchanged against its Oz counterpart in the Asian morning, moving away from lowest levels since 1997 reached at 1.0291 in the last week, largely on divergent monetary policy stance between the neighbouring economies.

AUD/NZD trades above 5-DMA

Currently, the AUD/NZD cross trades flat at 1.0421 levels, with a day’s high of 1.0431 and day’s lows posted at 1.0412. The cross in AUD/NZD trades flat as markets seem to be unimpressed by upbeat NZ credit card spending numbers which revealed that Credit card spending rose 1.9% in January compared with December, or 6.2% year-on-year, to NZD3.04 billion. The figures support recent signs that consumption is still in a firm upswing.

However, the pair remains pressured on increased expectations of another Reserve Bank of Australia (RBA) rate cut in its March meeting continues to weigh on the Aussie. While, weak inflationary pressures are keeping the Reserve Bank of New Zealand (RBNZ) firmly 'on hold' with interest rates for now.

AUD/NZD Technical Levels

The pair has an immediate resistance at 1.0442 levels, above which gains could be extended to 1.0491 levels. On the flip side, support is seen at 1.0400 levels, from here it to below 1.0376 levels.

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