AUD/NZD firmer, heading towards 20-DMA ahead of RBA

The cross in the AUD/NZD extends its recovery mode into a third-day today, and hits fresh six-day highs just ahead of the RBA policy decision.

AUD/NZD extends beyond 1.0400

The AUD/NZD pair now rallies 0.52% to fresh six-day highs of 1.0433, eyeing for a test of 20-DMA located at 1.0453. The AUD/NZD cross climbs higher this session, mainly driven by strong gains in the AUD/USD pair, which outweighs the positive tone seen behind the Kiwi.

Moreover, the AUD/USD pair rallied in response to upbeat Australian economic releases, while expectations that the RBA may keep the policy steady today, further added to the upside in the major.

The immediate focus now remains on the RBA cash rate announcement due out shortly, while the NZ GDT price index and US datasets will be also eyed for fresh incentives.

AUD/NZD Technical Levels

To the upside, the next resistance is located at 1.0450/53 (psychological levels/ 20-DMA) and above which it could extend gains to at 1.0480 (daily R3).To the downside immediate support might be located 1.0402/00 (10-DMA/ round number) below that at 1.0384 (5-DMA).