AUD/NZD testing 1.05 offers post dovish RBNZ

FXStreet (Bali) - AUD/NZD broke higher, currently testing offers around the 1.0530 following a more dovish -than-expected RBNZ statement, with the Central Bank leaving the doors wide open to potential rate cuts later this year.

The Central Bank of New Zealand said that "it would be appropriate to lower the OCR if demand weakens, and wage and price-setting outcomes settle at levels lower than is consistent with the inflation target."

AUD/NZD next resistance level 1.0530, previous daily highs, followed by the next round number at 1.06, while on the downside, support should be found on shallow dips given the negative sentiment in the Kiwi.