AUD/NZD: Aussie eyeing 1.0555 ahead of the RBA meeting

• The Reserve Bank of Australia (RBA) interest rate decision and rate statement’s report is scheduled on Tuesday at 4:30 GMT.
• Bears are looking for a test of the 1.0555 level.

The AUD/NZD is trading at around 1.0610 on Easter Monday as trade war fears and risk-off sentiment came back in the limelight. It had been reported that China will impose tariffs on imported pork as well as fruits from the US. 

Early on Tuesday, the RBA will announce its interest rate decision. Analysts widely expect the central bank of Australia to remain on hold with the policy rate for the coming months, with about a 30% chance of a rate hike in Q4 this year compared with two rate hikes expected for this year only six months ago.

Australia, New-Zealand, Most of the European markets and Canada stock markets are closed in observance of Easter Monday and will re-open on Tuesday. The foreign exchange markets, however, remains open despite the Easter holidays.

AUD/NZD 4-hour chart

The AUD/NZD is trading below its 50, 100 and 200-period period simple moving average on the 4-hour chart. Support is seen at the 1.06 level which acted as a floor in the previous two sessions; if the bears break it to the downside the next support in sight would likely be the 1.0555 previous swing low. On the flip side, dynamic resistance is seen at the 50-period simple moving average at 1.0633 and at the previous swing high seen at the 1.0670 high.