AUD/NZD targets 1.1381 post NZ GDP miss

FXStreet (Guatemala) - AUD/NZD is currently trading at 1.1340 with a high of 1.1349 and a low of 1.1272.

AUD/NZD has rallied on the back of the GDP data missing expectations after a recent dovish RBNZ who is monitoring further data in respect to whether they will cut rates substantially before the year is out. New Zealand's Gross Domestic Product (QoQ) (Q2) came at 0.4% vs 0.6% expected and 0.2% previous, while the (YoY) (Q2) came at +2.4% vs +2.5% expected and +2.6% previous.

There is a divergence between the two central banks, with the RBA painting a more bullish outlook for the economy and holding in wait and see mode in respect to its interest rate policy and this leaves the Aussie in greater demand than the kiwi.

AUD/NZD technically overbought

AUD/NZD has been in a strong bullish trend since the recovery that started to take place from recent lows this month from 1.0935 up to aforementioned highs. Bulls target R3 at 1.1381 with MACD being positive although RSI (14) is running into overbought territory upon bullish MA's.