AUDNZD trying to find direction
New Zealand Finance Minister Grant Robertson announced, that the RBNZ will consider helping the overheated housing prices by its monetary and other financial policy decisions. Housing prices have been soaring last year due to low rate policy, introduced after the Covid-19 pandemic hit the economy. Robertson´s words made investors comfortable to buy the New Zealand dollar, which rose against most of its peers.
The AUDNZD pair hit resistance around 1.0820 (A) before the announcement, which also helped the kiwi to strengthen. The pair fell to its 50 moving average and is trying to decide whether to test the resistance again or continue in decline. If the course broke above resistance A, it could continue to rise towards the 1.0900 – 1.9300 zone of resistance (C). On the other hand, should the kiwi strengthen further, it could send the course down to the 0.0560 support area (B).