Aussie to Decline
Although Australia's inflation pattern showed a stronger growth, the inflation rates dropped down in March. Based on these patterns, the policy makers will device inflation measures accordingly.
The Reserve Bank of Australia (RBA) slashed interest rates multiple times last year as inflation fell to lows. The RBA has held its cash rate overnight at 1.5% since August and it is expected to remain the same for the rest of the year. Business NZ PMI climbed up from a previous value of 51.6 to 55.2 in March. New Zealand's manufacturing sector showed an increasein activity last month when compared to January.
The Executive Director for Manufacturing NZ Catherine Beard said that it was pleasing to see the sector pick up after January's dip due to seasonal factors. Despite the negative factors impacting the activity levels last month, there is a positive increase of 61.7%.
The AUD/NZD pair rallied strongly than yesterday to hit the critical resistance level at 1.1016 without breaching it. There may be a bearish rebound now that might push the price to test 1.0924 levels, pointing that the price is confined between the mentioned levels.
Therefore, breaking 1.0971 levels will push the price to resume its bearish correctional track for its next target located at 1.0924 levels. Breaching 1.0924 levels will stop the current negative pressure and lead the price to achieve gains that begin at 1.0904 with oscillator below the 50.0 levels. Unless there is a breach in 1.0971 levels, the bearish trend will continue to remain active.
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