AUD/NZD attempts to regain 1.1250; NZ GDP and Australian Employment are under consideration

After recovering to about 1.1214 in the early Tokyo session, the AUD/NZD pair is heading toward the crucial 1.1250 barrier. In a larger sense, after touching a low of 1.1120 last week, the asset is currently rising. The market participants use every downturn as a purchasing opportunity in anticipation of positive Australian employment data.

According to the consensus, the Australian Bureau of Statistics will publish a 35k increase in job additions against a 40.9k decrease in payrolls. Also, the unemployment rate is anticipated to remain unchanged at 3.4%. A similar event might encourage the Reserve Bank of Australia (RBA) to raise the Official Cash Rate (OCR) without hesitation. The release of the Consumer Inflation Expectation data by the University of Melbourne is also of great significance.

The Consumer Inflation Expectation is anticipated to rise significantly to 6.7% from 5.9% previously. This will drive RBA Governor Philip Lowe to declare a fifth consecutive 50 basis point (bps) rate hike at the October meeting of the monetary policy committee.

On the New Zealand front, investors anticipate Thursday's release of Gross Domestic Product (GDP) figures. Consensus forecasts indicate a 0.2% expansion in the New Zealand economy, as opposed to the 1.2% reported previously. While the quarterly numbers will result in a 0.8% expansion as opposed to a 0.2% contraction.