Confirming you are not from the U.S. or the Philippines

By giving this statement, I explicitly declare and confirm that:
  • I am not a U.S. citizen or resident
  • I am not a resident of the Philippines
  • I do not directly or indirectly own more than 10% of shares/voting rights/interest of the U.S. residents and/or do not control U.S. citizens or residents by other means
  • I am not under the direct or indirect ownership of more than 10% of shares/voting rights/interest and/or under the control of U.S. citizen or resident exercised by other means
  • I am not affiliated with U.S. citizens or residents in terms of Section 1504(a) of FATCA
  • I am aware of my liability for making a false declaration.
For the purposes of this statement, all U.S. dependent countries and territories are equalled to the main territory of the USA. I accept full responsibility for the accuracy of this declaration and commit to personally address and resolve any claims or issues that may arise from a breach of this statement.
Cancel Confirm
We are dedicated to your privacy and the security of your personal information. We only collect emails to provide special offers and important information about our products and services. By submitting your email address, you agree to receive such letters from us. If you want to unsubscribe or have any questions or concerns, write to our Customer Support.
Confirm
Octa trading broker Sign up Log in
Trading news
Back
10 Dec 2024

AUD/NZD slides to 1.0950 area after RBA decision, holds above 200-day SMA

  • AUD/NZD faces rejection near 1.1000 after the RBA announced its policy decision.
  • The RBA leaves its cash rate unchanged, though turned dovish and weighs on the AUD.
  • Bets for aggressive RBNZ easing undermine the NZD and help limit losses for the cross.

The AUD/NZD cross attracts fresh sellers following an Asian session uptick to the 1.1000 psychological mark and drops to a fresh daily low after the Reserve Bank of Australia (RBA) announced its policy decision. Spot prices currently trade around mid-1.0900s, within striking distance of over a two-month low touched on Monday, though manage to hold above the very important 200-day Simple Moving Average (SMA) pivotal support.

The Australian central bank, as was widely expected, decided to maintain the status quo for the ninth straight meeting and left the Official Cash Rate (OCR) unchanged at 4.35% following its December policy meeting. In the accompanying statement, the RBA noted that the board is gaining some confidence that inflationary pressures are declining in line with their forecasts. This reaffirms bets for an early rate cut and turns out to be a key factor exerting pressure on the Australian Dollar (AUD) and the AUD/NZD cross. 

Meanwhile, government data released earlier this Tuesday showed that China’s Trade Balance unexpectedly grew to $97.44 billion in November from $95.27 billion in the prior month. This, however, was offset by the disappointing readings on exports and imports, which pointed to still sluggish overseas and local demand. Apart from this, worries about US President-elect Donald Trump's impending tariffs further dent demand for the China-proxy Aussie and contribute to the AUD/NZD pair's intraday slide.

That said, bets for aggressive policy easing by the Reserve Bank of New Zealand (RBNZ) might hold back traders from placing aggressive bullish bets around the New Zealand Dollar (NZD) and help limit losses for the AUD/NZD cross. This, in turn, makes it prudent to wait for some follow-through selling below a technically significant 200-day SMA before positioning for an extension of the recent decline witnessed over the past two weeks or so. Traders now look to the post-meeting presser for a fresh impetus.

Economic Indicator

RBA Interest Rate Decision

The Reserve Bank of Australia (RBA) announces its interest rate decision at the end of its eight scheduled meetings per year. If the RBA is hawkish about the inflationary outlook of the economy and raises interest rates it is usually bullish for the Australian Dollar (AUD). Likewise, if the RBA has a dovish view on the Australian economy and keeps interest rates unchanged, or cuts them, it is seen as bearish for AUD.

Read more.

Last release: Tue Dec 10, 2024 03:30

Frequency: Irregular

Actual: 4.35%

Consensus: 4.35%

Previous: 4.35%

Source: Reserve Bank of Australia

 

Dec 10, 2024

Australia RBA Interest Rate Decision meets expectations (4.35%)

Australia RBA Interest Rate Decision meets expectations (4.35%)
Read more Previous
Dec 10, 2024

AUD/JPY tumbles to near 96.50 as RBA leaves interest rate unchanged at 4.35%

The AUD/JPY cross weakens to near 96.55 during the Asian trading hours on Tuesday.
Read more Next