- RBA holds rates at 1.5%, markets already have this priced in.
- A lack of positive economic AUD data is hobbling the currency against peers.
The AUD/NZD pair is middling through the Asia market, slightly off session highs but still twisting around the 1.0750 level.
The Aussie is slightly lower against the Kiwi following the Reserve Bank of Australia’s (RBA) interest rate decision that saw the Australian central bank leave rates unchanged at 1.5%. Markets have barely registered the news, as traders have already priced in the RBA to remain on hold for interest rates well into 2019 as Australian economic data has continued to disappoint.
As the RBA noted in their rate statement, high levels of household debt continue to crimp growth potential for consumption spending, while suppressed wage growth and a lopsided housing market continue to bog down the overall economy in Australia. The RBA also noted the risk that an appreciating AUD would have on inflation hopes, though this is unlikely given that the Aussie has done little but decline in the broader markets as expectations for rate increases from the RBA continue to get pushed further and further out.
The pair is still trading beneath the 200-day SMA, and bullish prospects are beginning to thin out for the AUD technical indicators return to their middling positions with the AUD/NZD still hovering in bearish territory. H4 charts show potential for a higher low off of 1.0660, but only if the pair is able to resume climbing over the 61.8 Fibo level at 1.0763, which is currently acting as resistance. Intraday support levels can be found at 1.0705 and 1.0660, with resistance at 1.0770 and 1.0826.