Trading | 1 month ago
The Australian dollar and NZ dollar has pulled back on Monday after massive gains over the past week. This was continued on Tuesday trading session as well amid the U.S. dollar index (DXY) bouncing back from a one-month low.
Investors are expecting a major price correction in AUD/USD after the dovish tone of Reserve Bank of Australia (RBA) monetary policy announcement. Aussie central bank has not declared any time frame for the reduction in weekly bond purchases and rate hike projection. As a result of this, Australian dollar fell by 0.34% to 0.741 price level against the US dollar. However, it is currently trading near the 50-day exponential moving average and trying to establish a firm support.
The AUD/USD pair is held back by the Australian economy that has been locked down from last few months. If AUD/USD pair breaks below the 0.7400 price level, then one must look for selling opportunities as it could fall apart very quickly.
Meanwhile the NZD/USD rallied in the last week due to the US dollar weakness and gained over 150 pips. However, as of today, the pair is struggling to preserve its bullish momentum. The NZD/USD pair is down by 0.13% and is trading near 0.7100 price level. The pandemic situation in New Zealand is still at large and it's a great threat to the economy. One must look for selling opportunities in NZD/USD pair if it breaks below the 0.7100 price level.
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