AUD/NZD does not cheer rise in Aussie inflation expectations

• Aussie inflation expectations ticked higher in March.
• AUD/NZD is off session highs, remains bid, but sees little action after Aussie data.
• Drop in Australia wage growth expectations could be capping gains.

The rise in Australia consumer inflation expectations has gone unnoticed as far as the AUD/NZD pair is concerned.

The cross continues to move away from the session high of 1.0783 and was last seen trading at 1.0761.

The Melbourne Institute survey of consumer inflationary expectations released a few minutes ago showed the expected inflation rate increased to 3.7 percent in March from the February figure of 3.6 percent.

However, the wage growth expectations in the coming 12 months fell to 1.8 percent from 2.4 percent in the previous quarter. That seems to have taken the shine off the inflation expectations figure.

That said, the pair is still reporting a 0.20 percent gain on the day, as the NZD is under pressure due to a weaker-than-expected NZ GDP release.

AUD/NZD Technical Levels

A break above 1.0802 (March 12 high) would expose resistance at 1.0828 (50-day MA) and 1.0859 (200-day MA). On the other hand, a move below 1.0739 (session low) could yield a sell-off to 1.0698 (Feb. 16 low) and 1.0654 (Feb. 22 low).