AUD/NZD Price Analysis: Well set for 1.1100 as Australia, New Zealand data favor bulls

• AUD/NZD jumps 50 pips, clears key upside hurdles on strong Australia, New Zealand data.
• Australia Employment Change rallies, Consumer Inflation Expectations improve while NZ Q1 GDP signals ‘technical’ recession.
• Clear upside break of immediate resistance line, key HMAs favor bulls to aim for 61.8% FE level.
• Bears need to break 1.0880 support to qualify for a small fight.

AUD/NZD marks a steep reversal from the weekly low, as well as snaps a two-day downtrend, as it jumps to 1.1010 after witnessing upbeat Australia employment data on early Thursday. That said, the exotic pair previously cheered strong Australian inflation clues amid fears of a technical recession in New Zealand.

That said, Australia’s Consumer Inflation Expectations for June rose to 5.2% versus 4.8% expected and 5.0% prior. Further, the Employment Change rallied by 75.9K in May compared to 15K market forecasts and -4.3K previous readings. Additionally, Australia's Unemployment Rate drops to 3.6% against expectations of witnessing a no change figures of 3.7%.

On the other hand, New Zealand’s first quarter (Q1) 2023 Gross Domestic Product (GDP) matches the -0.1% QoQ forecast, versus -0.7% (revised) prior. Further details reveal that the yearly figures ease to 2.2% YoY for the said period versus 2.6% market expectations and 2.3% previous readings. Given the second consecutive negative quarterly growth figure, the Pacific nation flags a ‘technical’ recession.

Technically, the AUD/NZD pair crosses a downward-sloping trend line and the 200-Hour Moving Average (HMA) after the data, which in turn allows the bulls to poke the 100-HMA hurdle of around 1.1010 by the press time.

It should be noted that the upbeat MACD signals and RSI (14), not overbought, adds strength to the bullish bias suggesting the AUD/NZD pair’s run-up towards refreshing the monthly high, near 1.1050 by the press time. In doing so, it will aim for the 61.8% Fibonacci Expansion (FE) of its May 30 to June 13 moves, near 1.1100.

Alternatively, the resistance-turned-support of near 1.0990 precedes the 200-HMA level of around 1.0985 to restrict the short-term downside of the pair.

Following that, the latest swing low and June 06 bottom, respectively near 1.0930 and 1.0880 will act as the final defenses of the AUD/NZD bulls.

AUD/NZD: Hourly chart

Trend: Further upside expected