AUD/NZD en route to 1.0800 as New Zealand GDP disappoints

• New Zealand GDP data come is lower than expected.
• NZD is lower against the AUD, USD and GBP.

The AUD/NZD is trading at around 1.077 after the pair jumped on worse than expected New Zealand GDP data. 

The NZ GDP came in at 2.9% vs 3.1% y/y while the monthly data came in at 0.6% vs 0.7% expected. In a swift reaction, the AUD/NZD gained almost 40 pips in 5 minutes following the news reaching an intraday high at 1.0785. The NZD has also greatly depreciated against the US Dollar and the British Pound. 

Coming up next is the consumer inflation expectation in March at 00.00 GMT and the Royal Bank of Australia Bulletin at 00.30 GMT.  

AUD/NZD daily chart

Today’s move on the AUD/NZD is encouraging for bulls. However, they still need to break out of the range and the 1.0800 level. If they manage to do so, the next scaling point is seen at 1.0850 supply zone with the 200-period DMA. The market should be supported at 1.0700 lower part of the multi-day range and 1.0650 which is the cyclical low.