• A downside break of inventory distribution ahead of RBA policy signals weakness in the cross.
• The death cross, represented by 50-and 200-EMAs adds to the downside filters.
• A downside move to near 1.1100 looks visible if the asset surrenders intraday low at 1.1071.s

The AUD/NZD pair has displayed a less-confident rebound after defending weekly lows at around 1.1076 in the Asian session. The cross has remained in the grip of bears for the past week after failing to sustain above the critical hurdle of 1.1170.

A downside break of the inventory distribution in a range of 1.1090-1.1135 is advocating a downside momentum ahead. Usually, an inventory distribution after a downside move indicates the initiation of fresh shorts by investors, which prefer to enter an auction after the establishment of a downside bias.

A death cross, represented by the 50-and 200-period Exponential Moving Averages (EMAs) at 1.1104, strengthens the odds of a bearish reversal.

The Relative Strength Index (RSI) (14) is oscillating in a 40.00-60.00 range, which indicates a consolidation ahead.

A decisive move above the 200-EMA at 1.1104 will send the cross towards July 29 high at 1.1135. A breach of the latter will unleash the aussie bulls, which will drive the asset towards the previous week’s high at 1.1180.

On the flip side, the kiwi bulls could drive drag the asset further to July 20 low at 1.1036 and the psychological support at 1.1000 if the cross drops below Tuesday’s low at 1.1071.

AUD/NZD hourly chart