2026-02-03 04:24:00
The RBA’s January interest rate hike gave the Australian dollar a fresh lift and kept AUD/NZD on track to extend its long-term uptrend.
Is the pair on its way to new 2026 highs?
Here’s what we’re seeing on the daily time frame:
In case you missed it, the Reserve Bank of Australia (RBA) raised interest rates by 25 basis points to 3.85% as expected, pointing to surging inflation and a tightening labor market.
While policymakers stopped short of clearly signaling more hikes, the overall hawkish tone was enough to push the Australian dollar higher across the board during Tuesday’s Asian session.
The New Zealand dollar also caught some support from a risk-friendly backdrop, but it has taken a backseat to the Aussie as traders leaned into the policy divergence story.
This keeps AUD/NZD firmly on the radar heading into New Zealand’s quarterly labor market data later this week, which could decide whether the pair’s recent momentum has more room to run or starts to cool off.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the Australian dollar and the New Zealand dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
AUD/NZD has been trending higher since April 2025 and recently bounced from the 1.1550 area, right around the bottom of its ascending channel pattern.
The pair is now trading closer to 1.1625, which puts it within reach of the mid-channel resistance zone and the January highs near 1.1670.
If the Aussie’s bullish momentum stays intact, AUD/NZD could grind higher toward the 1.1700 psychological level and potentially even the R2 Pivot Point near 1.1760.
On the flip side, if sellers show up around mid-channel resistance or if upcoming catalysts tilt the balance toward Aussie selling or Kiwi buying, the pair could slide back toward the 1.1550 support area.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
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