AUD/NZD retreats towards 1.1200 on strong NZ Q2 GDP, Australia Employment data eyed

AUD/NZD takes offers to refresh intraday low after strong NZ Q2 GDP.
New Zealand’s Q2 GDP rose past market expectations and prior on QoQ.
Mixed concerns surrounding China, RBA versus RBNZ game tests bulls.
Australia’s employment data for August will be important for fresh impulse.

Anil Panchal FXStreet

AUD/NZD renews intraday low around 1.1220 on strong New Zealand (NZ) Gross Domestic Product (GDP) during Thursday’s initial Asian session. Even so, the cross-currency pair remains mildly offered, most cautious, as traders await Australia’s jobs report for August.

New Zealand’s (NZ) second quarter (Q2) Gross Domestic Product (GDP) grew 1.7% QoQ compared to 1.0% market expectations and a prior contraction of 0.2%, per the latest report from Statistics New Zealand. The YoY figures came in as 0.4% versus 0.2% expected and 1.2% previous readouts.

With the firm NZ GDP, the odds of the Reserve Bank of New Zealand’s (RBNZ) stronger rate hikes escalated, which in turn favored the New Zealand dollar (NZD). Also exerting downside pressure on the AUD/NZD pair are the cautious statements from the Reserve Bank of Australia (RBA) at the latest.

Earlier in the day, NZ Finance Minister Grant Robertson crossed wires, via Reuters, stating that tighter fiscal policy will necessitate difficult decisions. The policymaker also mentioned, “New Zealand is entering a period of more focused spending.”

Elsewhere, fears surrounding China’s economic recovery and the dragon nation’s readiness for heavy stimulus join the geopolitical tussles between the Washington and Beijing to challenge the pair traders. Also, the Russia-Ukraine war and the energy crisis in Europe are some extra catalysts that restrict the pair’s upside momentum.

Above all, anxiety ahead of the following week’s RBNZ and the Fed meeting seems to challenge the AUD/NZD prices.

While portraying the mood, the Wall Street benchmarks printed mild gains while the Treasury yields retreated from the multi-day high, posting mild losses at the end.

Moving on, Australia’s Consumer Inflation Expectations for September, which is expected to be 6.7% versus 5.9% prior, will offer immediate directions ahead of the key Aussie jobs report. Forecasts suggest the Aussie Employment Change to increase from -40.9K to 35K while the Unemployment Rate may remain unchanged at 3.4%. The Reserve Bank of Australia’s (RBA) cautious mood might challenge the AUD/NZD bulls.

Also read: Australian Employment Preview: Will labor market upturn save the aussie?

Technical analysis

Although double tops surround 1.1255-60 challenge AUD/NZD bulls, the pair’s downside remains elusive unless declining below June’s low of 1.1168.

Additional important levels

Overview
Today last price	1.1234
Today Daily Change	0.0013
Today Daily Change %	0.12%
Today daily open	1.1221

Trends
Daily SMA20	1. 1164
Daily SMA50	1.1109
Daily SMA100	1.107
Daily SMA200	1.0893

Levels
Previous Daily High	1.1258
Previous Daily Low	1.1196
Previous Weekly High	1.1215
Previous Weekly Low	1.1115
Previous Monthly High	1.1278
Previous Monthly Low	1.0943
Daily Fibonacci 38.2%	1.122
Daily Fibonacci 61.8%	1.1234
Daily Pivot Point S1	1.1192
Daily Pivot Point S2	1.1163
Daily Pivot Point S3	1.113
Daily Pivot Point R1	1.1254
Daily Pivot Point R2	1.1287
Daily Pivot Point R3	1.1316

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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