• AUD/NZD picks up bids to reverse the early losses on RBA Minutes.
• RBA Minutes appear slightly hawkish while justifying the pause in rate hike trajectory.
• China Q1 GDP, risk catalysts and New Zealand’s quarterly inflation data are the key for clear directions.

AUD/NZD cheers upbeat statements from the latest Reserve Bank of Australia (RBA) Monetary Policy Meeting Minutes during early Tuesday, picking up bids to refresh intraday high near 1.0850 at the latest. In doing so, the exotic pair reverses the initial losses, the first in the seven days, to rejoin the bullish run.

The latest RBA Minutes appear hawkish as it said that the board considered a rate hike at the April meeting, before deciding to pause.

Also read: RBA minutes: Australia's central bank actively considered April rate hike before deciding on pause

Apart from the RBA Minutes, the cautious optimism in the market, head of the key China data and amid receding fears of recession, also underpin the AUD/NZD pair’s latest run-up. That said, the recent comments from the International Monetary Fund (IMF) about China’s economic growth seems to underpin the AUD/NZD run-up.

“In its latest World Economic Outlook, the IMF forecasts that China’s economic growth contribution will be nearly double that of India and the US. India is forecast to deliver 12.9% of global growth while the US is forecast to deliver 11.3% of the growth,” per analysts at ANZ.

While portraying the mood, S&P 500 Futures remain directionless while Australia’s ASX 200 prints a 0.30% intraday loss by the press time.

That said, the initial market reaction to the RBA Minutes appears impressive. However, the AUD/NZD pair traders should rely on the China Q1 GDP, expected 2.2% QoQ versus 0.0% prior, for clear directions. Above all, Thursday’s New Zealand Q1 Consumer Price Index (CPI), expected to rise to 2.0% QoQ versus 1.4% prior, will be crucial for the exotic pair traders to watch for clear directions.

Technical analysis

The MACD indicator flashes bullish MACD signals whereas the RSI (14) line grinds higher past the 50 level, not overbought, which in turn suggests further advances of the AUD/NZD pair unless it drops below a fortnight-old ascending support line, close to 1.0770 by the press time.

Also read: AUD/NZD Price Analysis: Retreats below 1.0860-70 key hurdle ahead of RBA Minutes, China Q1 GDP