The AUD/NZD pair gave up moderate intraday gains after setting a new four-week high in the 1.0982–1.0983 level, following the Reserve Bank of Australia's (RBA) monetary policy decision. Nevertheless, spot prices are not yet showing signs of active selling. The Australian dollar weakened slightly after the RBA's expected 25-basis-point interest rate cut, which became the main factor putting pressure on AUD/NZD. In its accompanying statement, the central bank noted that labor market conditions had improved in recent months, while inflation continued to decline.

In contrast, the Reserve Bank of New Zealand (RBNZ) is expected to lower its Official Cash Rate (OCR) by 25 basis points at its next meeting due to weak labor market data, low inflation expectations, and slowing wage growth. These factors are causing the New Zealand dollar to lag behind the Australian dollar and provide an additional reason to support AUD/NZD.

Going forward, the pair's dynamics will be influenced by Australia's wage price index release on Wednesday and employment data on Thursday. Additionally, Chinese data on Friday may trigger short-term volatility in the AUD/NZD pair in the second half of the week. However, the main focus should remain on the upcoming RBNZ monetary policy decision, expected next Wednesday.

From a technical perspective, the breakout above the 200-day SMA on the daily chart acts as a bullish trigger. Moreover, daily chart oscillators remain positive, supporting the constructive outlook. The pair encountered resistance at the 1.0982–1.0983 level near the weekly high. A break above this level would likely allow prices to reach the key 1.1000 level. Support is now provided by the 200-day SMA, which previously served as resistance around 1.9438.