AUD/NZD - Above weekly 200-MA for the first time since Nov 2012

AUD/NZD is trading above the weekly 200-MA for the first time since November 2012, largely due to relentless selling in the NZD/USD pair over the last few days.

Meanwhile, AUD/USD has remained resilient despite the drop in the iron ore prices to one-month low.

Focus on RBA

The Reserve Bank of Australia is seen holding the interest rate unchanged at record lows. Moreover, the bank has little room to move rates on either side, given the housing bubble concerns and upbeat Q4 GDP and trade balance number.

Nevertheless, traders would scan the policy statement for comments on inflation, commodity prices and exchange rate.

AUD/NZD Technical Levels

The cross was last seen trading around 1.0854. A daily close above 1.0859 (weekly 200-MA) would expose 1.0971 (Jan 2016 high) and 1.10 (zero figure) levels. On the other hand, a breakdown of support at 1.0829 (session low) could yield a pull back to 1.0786 (5-DMA) and 1.0766 (Mar 1 high).