AUD/NZD slips below 1.1090 as S&P releases downbeat Aussie PMI data

• AUD/NZD has faced barricades around while attempting to surpass 1.1095 on weak Aussie PMI.
• The upbeat Australian employment data will support the RBA for hiking rates unhesitatingly.
• Kiwi bulls remained under pressure despite the rate hike announcement by the RBNZ.

The AUD/NZD pair has slipped below 1.1090 as the S&P Global reported downbeat Aussie PMI data. The Composite PMI has landed at 50.6, lower than the prior release of 52.6.  Also, the Manufacturing and Services PMI remained lower at 55.7 and 50.4 respectively than their expectations and their former figures.

The cross has remained in the grip of bulls for the past week after the release of the upbeat aussie employment data. The Unemployment rate slipped significantly to 3.5% from the prior release of 3.9% and the expectations of 3.8%. The print of 3.5% jobless rate has been the lowest in the past 48 years. Also, the economy managed to generate 88.4k employment opportunities in June, much higher than the estimates of 25k and the former figure of 60.6K. There is no denying the fact that the tight labor market will delight the Reserve Bank of Australia (RBA) while drafting the next rate hike.

On the kiwi front, the kiwi bulls have failed to capitalize on the interest rate hike announcement by the Reserve Bank of New Zealand (RBNZ). RBNZ Adrian Orr features a consecutive rate hike by 50 basis points (bps), pushing the Official Cash Rate (OCR) to 2.5% in order to combat the runaway inflation rate.

Next week, the release of the Australian Consumer Price Index (CPI) by the Bureau of Statistics will be of significant importance. Earlier, the overall CPI for the first quarter of CY2022 landed at 5.1%. This time, investors should brace for further elevation as oil prices remained upbeat.