Offered tone around NZD gathered pace in Asia following the disappointing New Zealand GDP release, pushing the AUD/NZD higher to near 1.03 handle.

Trades above hourly 50-MA

At the time of writing, the cross was trading above its hourly 50-MA level of 1.0279 and around its hourly 100-MA level of 1.0291.

New Zealand second quarter GDP came-in at 0.9% Q/Q vs. 1.1% expected and 3.6% Y/Y vs. 3.7% expected. The weak data has triggered speculation that RBNZ may have to resort to aggressive rate cuts in the near future. The central bank rate decision is due next week. The focus now is on the Aussie employment figures.

AUD/NZD Technical Levels

Acceptance above 1.03 (zero figure) could yield a re-test of hourly 200-MA of 1.0322. Next major support is seen at 1.0380 (Sep 8 high). On the downside, hourly 50-MA level of 1.0279 could offer support, which if breached would shift risk in favor of a slide towards 1.0237 (yesterday’s low) and 1.02300 (zero figure).