AUD/NZD rebounds sharply towards 1.08 post-RBA

The Australian dollar extends its recovery mode versus its OZ neighbour in the Asian morning, with AUD/NZD catching fresh bid-wave on the release of RBA May 3 meeting minutes.

AUD/NZD finds solid support near 1.0730 region

Currently, the AUD/NZD pair rises 0.42% to 1.0781, haven printed fresh daily highs at 1.0789 last hour. The cross in the AUD/NZD rebounded sharply from near session lows and witnessed a sharp rally after the Australian dollar was bolstered by a slightly less dovish RBA minutes document, which read that the RBA members discussed leaving interest rates on hold at its monetary policy meeting held earlier this month.

However, further upside faces headwinds as the Kiwi also remains strongly bid, with markets taking the yield advantage amid oil-driven risk-on rally in the global equities. Oil prices reached fresh 2016 highs a day before and lifted the sentiment across the financial markets.

Looking ahead, the immediate focus now remains on the NZ inflation expectations data due later this session ahead of the US CPI report and NZ GDT price index results due later in the NA session.

AUD/NZD Levels to watch

The pair finds the immediate resistance at 1.0800/32 (round number/ May 12 High) above which gains could be extended to the next hurdle located at 1.0878/93 (20-DMA/ 1h 200-SMA). On the flip side, the immediate support located at 1.0730 (previous lows). Selling pressure is likely to intensify below the last, dragging the Aussie 1.0694 (multi-week lows).