Aussie trade data lifts AUD/NZD, RBA on tap

Record high Aussie trade surplus data pushed AUD/NZD higher to 1.0866 ahead of the Reserve Bank of Australia (RBA) rate decision. 

RBA to stand pat

The central bank is widely seen keeping the interest rates unchanged and reiterate that the strength in the AUD could complicate the rebalancing process. It will be interesting to see how the central bank sees the latest developments - dismal retail sales, peak inflation across the advanced world and retreat in the key commodity prices. 

Later in the day, GDT auction could influence the demand for the NZD. Experts say low volumes on offer at tonight's GlobalDairyTrade (GDT) auction may see prices rise for the second time in a row. 

AUD/NZD Technical Levels

A break above 1.0882 (5-DMA) would open up upside towards 1.0966 (Mar 31 high) and 1.10 (zero figure). On the other hand, a breakdown of support at 1.0841 (previous day’s low) could yield a sell-off to 1.0793 (Mar 27 low) and 1.0766 (Mar 1 high).