• AUD / NZD is under selling pressure on Thursday.
• The RBA’s dovish stance weighs on the Australian dollar.
• Kiwi wins on bullish GDP data.

The AUD / NZD cross currency pair racked up substantial losses on Thursday during the Asian session. The pair has been in continued bearish momentum from the previous four sessions, having hit a high at 1.0816.

As of this writing, AUD / NZD is trading at 1.0760, down 0.27% for the day.

The combination of factors weighing the performance of the Australian dollar against its counterpart.
The minutes of the Reserve Bank of Australia (RBA) June meeting revealed that the economy grew faster than earlier expected. However, the central bank has maintained its stance on keeping interest rates at record levels until 2024.

Meanwhile, RBA Governor Phil Lowe has warned of upward pressure on wages if the border remains closed for another year. Policymakers further said it would be premature to consider ending the bond buying program. This, in turn, soured the sentiment surrounding the aussie.

Rising tensions between Australia and China remain another negative factor for the performance of the AUD. In the latest development, Australian Prime Minister Scott Morrison, speaking at the Organization for Economic Co-operation and Development (OECD), lambasted China for undermining the rule of law and threatening world order free.

Australia’s Westpac-Melbourne Institute leading economic index fell 0.6% in May after gains of 0.2% the month before.

The unemployment rate fell to 5.10% in May from 5.50% the previous month. Full-time employment increased 97.5K in May. The participation rate jumped 66.2% in May, against 66% the previous month. The readings provide some cushion at the lower levels for the Aussie.

On the other hand, the Kiwi remained in good spirits after the Australian and New Zealand banking group (ANZ) forecast that the Reserve Bank of New Zealand (RBNZ) would increase the official exchange rate (OCR) as early as February. 2022 compared to earlier. scheduled for August 2022.

The projection followed strong gross domestic product (GDP) data of 1.6% in the first quarter of March, well above market expectations of 0.5%.

The growth differential between the two countries is currently turning in favor of the Kiwi.

Additional AUD / NZD levels