AUD/NZD bears are await for fresh catalyst

• AUD/NZD consolidated as markets await key data releases. 
• Aussie covid situation eyed and central bank divergence keeping cross better offered. 

AUD/NZD is currently trading at 1.0380 and higher by 0.1% following a move from the lows of 1.0368 to a high of 1.0383 so far for the session. 

''The question from here is; can the good news vibe in NZ get meaningfully better and/or the AUD bad news vibe get any worse?'' analysts at ANZ Bank said.

The Kiwi has been fuelled by the central bank divergence between the two nations as well as falling Delta case numbers in New Zealand. 

''While we are not out of the woods yet, so to speak, markets expect that it won’t be long before we are, and with that brings greater odds of an OCR hike and decreased downside economic risks, the analysts at ANZ Bank argued. 

Against the greenback, ''we still expect further NZD strength from here, but now see it levelling off at 0.72 by year-end (we previously had it reaching 0.75),'' the analysts said. 

Meanwhile, for the day ahead, it will be busier for the Aussie in terms of the calendar. 

PMIs for Australia and China are out at as well as Gross Domestic Product.

Domestic data will be critical. Investors have been monitoring strict movement restrictions for weeks as these have been hitting the local economy.

 Cases are still soaring and Canberra said it will remain in lockdown until at least Sept. 17. The extension is likely to soon be followed by a similar move by Australia's second-most populous state, Victoria.

on Tuesday reported 76 new locally acquired coronavirus cases, up marginally from 73 cases reported the previous day but it has been reported that there are 120 new cases today. 

State Premier Dan Andrews said too many people remain unvaccinated to significantly ease restrictions, but that Victoria would outline a plan today to reduce curbs as vaccination levels rise.