AUD/NZD set to extend gains beyond 1.0700 ahead of Aussie GDP data
|- AUD/NZD accumulates gains in the Asian session.
- Upbeat economic data underpins the demand for the aussie.
- Kiwi gains diminish post-RBNZ hawkish view.
AUD/NZD extendes the previous two session gains on Wednesday. The cross-currency pair staged a rebound from the multi-month low at 1.0597 on Thursday and posted single day gains post RBA interest rate decision on Tuesday.
At the time of writing, AUD/NZD trades at 1.0701, up 0.20% for the day.
The Reserve bank of Australia (RBA) maintained the status-quo on interest rate in its June monetary policy meeting. The RBA dovish stance on the future course of action diverged with the Reserve Bank of New Zealand (RBNZ) hawkish forward guidance in the previous week, which surprised the market.
Meanwhile, the Reserve Bank of Australia Head of Economic Analysis Bradley Jones said that the economic outlook remains optimistic with the surprising strength of the economy so far. The Aussie ticked a little higher as a reaction made to the comments.
Aussie remains upbeat on strong economic data, the IHS Manufacturing PMI rose 60.4 in May, beating market expectations at 59.9. Aussie gained on the higher readings.
On the other hand, kiwi gains are fading now, the latest Australia and New Zealand Bank (ANZ) survey, revealed that the New Zealand economy is struggling to meet demand on rising cost and inflationary pressure. The New Zealand Terms of Trade came at 0.1% in May in line with the market expectations.
As for now, traders are looking for the release of Australian Q1 Gross Domestic Product (GDP) data for fresh trading opportunities.
If the readings came above the market expectations, then it could further boost the performance of AUD.
AUD/NZD Additional Levels
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