The AUD/NZD has been bullish but was drifting since last week. In the 4H chart we can see it consolidate tightly around the 1.11 handle ahead of the NZ GDP release. AUD/NZD 4H Chart 6/18(click to enlarge) According to Statistics New Zealand, the NZ economy grew 0.2% in the first quarter this year. This is a dip from the 0.7% in Q4 2014, and missed forecasts that averaged 0.6%. The latest print represents a declining growth trend since 2013. NZ GDP:(click to enlarge; source: forexfactory.com) With growth continuing to shrink, the RBNZ had cut rates last week, which already gave the NZD a spanking. After the poor GDP data, we are sure to see further decline in the NZD because another rate cut is on the table. The RBA no the other hand seems to be done cutting rates, so relative to the NZD, the AUD should continue to do well. The weekly chart shows that the pair is about to break the 2014-high at 1.1304. Above the 2014-high, AUD/NZD has the 1.1576 to 1.1660 resistance area from August through October of 2013 in sight. As the market prices in another rate cut by the RBNZ, we should maintain the bullish outlook, but maybe limit our most aggressive expectation to 1.1750, where the 200-week SMA resides. With the weekly RSI also in overbought area, we should expect some short to medium-term (a couple of weeks to a month) consolidation around 1.1750 if price reaches there.NZD/USD Weekly Chart 6/18(click to enlarge)