AUD/NZD sold-off into RBA's neutral bias, 1.0475 tested

The RBA failed to provide any hawkish hints on the future course of the monetary policy program, spurring a fresh selling spiral in the AUD, which knocked-off the AUD/NZD cross to 1.0475 levels from more than two-week high of 1.0551.

RBA disappointed the hawks

The 'Death Cross’ - (bearish crossover between 50-DMA and 200-DMA) on the daily chart found validation in the neutral stance maintained by the RBA, in the wake of rising household debt and stronger AUD, which complicates the economic adjustment, as cited by the RBA’s policy statement.

However, the downside remains cushioned amid heavy losses seen in NZD/USD, as sentient around the resource-linked NZD soured after oil prices fell for the first time in nine days. Moreover, the Kiwi remains unnerved ahead of NZ GDT price index data due on the cards later today.

Technical Levels

The cross was last seen trading around 1.1480. On the lower side, breach of support at 1.0462/57 (20-DMA/ 10-DMA) could yield a pullback to 1.0427 (classic S2/ Fib S3) and to 1.0400 (zero figure). A break above 1.0547 (50-DMA) would expose 1.0615 (200-DMA) and 1.0642 (Apr 20 low).