AUD/NZD remains quiet around 1.0630 despite upbeat NZ GDP

• AUD/NZD has remained sideways despite the release of solid NZ GDP data.
• A sheer expansion in NZ's economic activities has triggered the risk of further upside in inflation.
• Going by the consensus, the Australian economy added fresh 19K jobs in November.

The AUD/NZD pair is displaying topsy-turvy moves around 1.0630 in the early Asian session. The cross has corrected gradually after hitting a fresh eight-day high at 1.0662 on Wednesday. The asset has remained muted despite the release of solid New Zealand Gross Domestic Product (GDP) data.

The quarterly GDP data for the third quarter of CY2022 has been recorded at 2.0%, higher than the expectations of 0.9% and the prior release of 1.7%. Also, the annual GDP data has soared to 6.4% vs. the consensus of 5.5% and the former figure of 0.4% in the same period. No doubt, a stellar expansion in NZ economic activities is going to provide a cushion to the New Zealand Dollar but will accelerate inflation risks ahead.

The Reserve Bank of New Zealand (RBNZ) is working hard in softening inflationary pressures with extreme policy tightening measures. RBNZ Governor Adrian Orr is going through sleepless nights in strategy-making to contain stubborn inflation. And, a sheer expansion in the extent of economic activities has accelerated the risk of further escalation in the Consumer Price Index (CPI).

On the Australian front, investors are awaiting the release of the Employment data. As per the consensus, the Australian economy has added fresh 19K jobs in November against the former addition of 32.2K. The Unemployment Rate is seen unchanged at 3.4%.

Apart from the payroll data, investors will also focus on 12-month consumer inflation expectations data, which is expected to decline to 5.7% against 6.0% released earlier. A decline in the one-year consumer inflation forecast will delight the Reserve Bank of Australia (RBA).