The 25bps rate cut by the RBNZ caught the market unawares and AUD/NZD has seen a sharp 200 pip rally.
The market will now go looking for a new comfortable 400/500 pip range and I’m guessing that this will lie somewhere around 1.11/1.15.
There is very strong technical resistance either side of 1.1400, weekly highs just above and the 200 week MA just below. If we get another sharp rally towards there in the next couple of sessions it will give swing traders a good opportunity.
Overall this pair is headed higher but as we know from decades of experience, the going will be very slow in the main.