AUD/NZD volatility spikes on diverging economic data from both nations

AUD/NZD experienced heightened volatility during Thursday's Asian session as contrasting economic releases from Australia and New Zealand triggered significant price swings. The pair initially surged 0.4% to 1.1085 following stronger-than-expected Australian employment data, with job additions reaching 42.3K versus 25.0K forecast. However, New Zealand's Q2 GDP growth of 0.8% quarter-on-quarter, beating expectations of 0.5%, prompted a sharp reversal, pulling the cross back to 1.1045. The diverging data highlights the relative strength of both economies, though Australia's labor market resilience suggests potential RBA hawkishness ahead. Technical indicators show the pair testing resistance at 1.1100, with support established at 1.1020. Traders are closely monitoring upcoming retail sales figures from both countries, which could determine whether AUD/NZD breaks above the current range or consolidates further.