AUD/NZD aims to recapture 1.1250, NZ GDP and Australian Employment eyed

• AUD/NZD is scaling higher to recapture the critical resistance of 1.1250.
• The Australian economy is expected to display the addition of payrolls in the labor market by 35k.
• Considering the consensus, the NZ economy will expand by 0.2% on an annual basis.

The AUD/NZD pair is advancing towards the critical hurdle of 1.1250 after a rebound to near 1.1214 in the early Tokyo session. On a broader note, the asset is marching higher from the past week after hitting a low of 1.1120. The market participants are capitalizing on every correction as buying opportunity on expectations of upbeat Australian employment data.

As per the consensus, the Australian Bureau of Statistics will report an addition in job additions data by 35k against a lay-off of 40.9k payrolls. Also, the Unemployment Rate is seen steady at 3.4%. An occurrence of the same will delight the Reserve Bank of Australia (RBA) to escalate the Official Cash Rate (OCR) further unhesitatingly. Adding to that, the release of the Consumer Inflation Expectation data by the University of Melbourne also holds significant importance.

The Consumer Inflation Expectation is expected to shift extremely higher at 6.7% against the prior release of 5.9%. This will compel the RBA Governor Philip Lowe to announce a fifth consecutive 50 basis points (bps) rate hike in its October monetary policy meeting.

On the NZ front, investors are awaiting the release of the Gross Domestic Product (GDP) data, which is due on Thursday. A mixed performance is expected as the consensus is showing an expansion in the kiwi economy by 0.2% against the 1.2% reported earlier. While the quarterly data will result in an expansion of 0.8% vs. a contraction of 0.2%.