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AUD/NZD awaits RBA below 1.1000

FXStreet (Córdoba) - AUD/NZD dropped modestly on Monday, but it continued to move sideways as it had been the case since last Thursday, in a range between 1.1025 and 1.0950.

During the Asian session at 03:30 GMT, the Reserve Bank of Australia (RBA) will announce its decision on monetary policy. No change in rates is expected. Analysts from ANZ Research see a risk that it shifts its language on the AUD once again. “With iron ore prices down 20% since September and the AUD broadly unchanged it’s not clear that the AUD is still “adjusting to the significant declines in key commodity prices.” They maintain a sell recommendation on AUD/NZD.

Before the RBA, current account data from Australia will be released, and also data from China with the non-manufacturing official PMI and the Caixin Manufacturing PMI.

AUD/NZD technical levels

Last week the pair peaked at 1.1088, 8-week high and then pulled back modestly, starting a consolidation phase, following a 600-pip rally that started November 2.

To the upside, resistance levels might lie at 1.1035 (Nov 27 high), 1.1085/90 (November high) and 1.1105 (Sept 25 high). On the downside, support could be seen at 1.0955 (Nov 26 low), 1.0910 (20-day MA) and 1.0880 (Nov 4 high).

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