When is Aussie GDP and how could it affect AUD/USD?
Aussie GDP overview
The Australian GDP for the 3Q will be released at 7:30 ET/0030 GMT and traders will be looking to this data just a day after the RBA announcements where the Aussie picked up a bid on a less dovish than expected outcome.
The RBA comments seemed more optimistic on wage growth, and in any event, the central bank did not seem to be on the verge of easing policy. For today, the market is looking for the SA QoQ gain for the 3Q to arrive at 0.7% vs 0.8% for the 2nd quarter, compared to the first quarter gain of 0.3%. The YoY reading is expected to rise to 3% vs 1.8% in the 2Q. A year ago the 3Q GDP came in at -0.4%. Replacing that with a solid 0.7% gain accounts for the big increase.
How might Aussie GDP affect AUD/USD
AUD/USD has dropped after gains made on the back of the RBA as a result, from 0.7654 to 0.7596 and commodities are pressuring the Aussie lower while the greenback remains robust. so it is a hard environment for bulls to gain traction even on positive news. "Australia's two-year yield had dipped below the US 2-year yield last week, but today's nearly 6 bp increase by Australia puts the rate back on top, and maybe lending the Aussie some support. A convincing move above $0.7650 could see $0.7700-$0.7730," explained analysts at Brown Brothers Harriman. Meanwhile, Valeria Bednarik, chief analyst at FXStreet explained that technically, "the 4 hours chart shows that the pair is at risk of falling further, as the price is resting above a now directionless 20 SMA, while technical indicators turned sharply lower, now pressuring their mid-lines. Additional declines below the 0.7570/80 region should see the pair resume its bearish strength, towards 0.7530, November low, and beyond."
AUD/USD analysis: unable to hold on to gains
About Aussie GDP
The Gross Domestic Product released by the Australian Bureau of Statistics is a measure of the total value of all goods and services produced by Australia. The GDP is considered as a broad measure of the economic activity and health. A rising trend has a positive effect on the AUD, while a falling trend is seen as negative (or bearish) for the AUD.