AUD/NZD struggles near 1.0720 post mixed Aussie data

• AUD/NZD has been under continuous selling pressure since June 14.
• The Aussie is weighed down by the outbreak of the highly contagious Delta variant and mixed economic data.
• Kiwi remained grounded on the expectations of a sooner rate hike.

AUD/NZD accumulated losses on Thursday in the Asian session. The pair has been in continuous downside momentum since the previous four sessions, after making a high at 1.0816 on June 11.

At the time of writing, AUD/NZD is trading at 1.0720, down 0.21% for the day.

The combination of factors weighing the performance of the Australian dollar against its counterpart. 

The comments from a panel of the 23 leading Australian economists keep the aussie on the edge. Economists believed that the Australian economy will be weak post-pandemic recovery. The panellist expected a slide in economic growth from 4% this year to 2.2% in 2024-25. 

The growing tensions between Australia and China remain another negative factor for AUD’s performance. Both Asia-Pacific’s leading economies have approached the WTO over tariff issues. The sentiments have worsened between the two largest trading partners in recent times.

The IHS Markit Australian Manufacturing PMI eased from the record high in May at 60.4 to 58.6. The Ai Group Australian Performance Manufacturing Index jumped 63.2 in June from 61.8 in the previous month.

Market participants remained cautious amid the worsening domestic coronavirus situation. Fresh lockdowns in Sydney, Darwin, and Perth have been imposed in the last week.

On the other hand, the economists at Australian and New Zealand Bank (ANZ) expect a sooner than expected Reserve Bank of New Zealand (RBNZ)  interest rate hike. The improved labor market forecasts and an accelerated fall in unemployment under 4% by 2023 are the major factors behind the expectations.

In the latest economic data, the New Zealand Building Permits fell to -2.8% in June from the previous 5.1%. The ANZ Business Outlook Index came at -0.6 in June, the highest in the last four months.

As for now,  traders are waiting for the Australian Balance of Trade and China CPI data to gauge the market sentiment.

AUD/NZD additional levels