AUD/NZD jumps to two-week highs

Offered tone around NZD gathered pace following dovish hints from RBNZ, pushing the AUD/NZD cross to a two-week high of 1.0405 levels.

Trades around 1.04

The cross was last seen trading around 1.04 levels. RBNZ kept interest rates unchanged but triggered speculation that further easing is in the pipeline. Short-end yields of the New Zealand bond market curve dropped, which clearly suggests the speculation of interest rate cuts is gathering pace.

The cross clocked a low of 1.0237 on September 14 before staging a technical recovery.

AUD/NZD Technical Levels

A break above 1.0435 (Sep 6 high) would open doors for 1.0489 (50-DMA + daily pivot resistance). On the lower side 1.0329 (Sep 2 low) could offer support, which if breached would shift risk in favor of a re-test of 1.0237 (cyclical low) levels.