AUD/USD to now consolidate below the 0.76 handle on the GDP miss?
- Australia Q3 real GDP +0.6 pct qtr/qtr, s/adj (Reuters poll +0.7 pct)
- Australia Q3 real GDP +2.8 pct yr/yr, s/adj (Reuters poll +3.0 pct)
AUD/USD has dumped on the release of the Aussie GDP Q3 data that missed for the quarter after the RBA has expressed a more bullish rhetoric in yesterday's meeting. Currently, AUD/USD is trading at 0.7578, down -0.41% on the day, having posted a daily high at 0.7636 and low at 0.7572.
Australia's Q3 GDP comes in a touch softer-than-expected
Markets don't like the look of this data and have figured that the RBA will now be on the lookout for a worsening economic picture ahead which will certainly cement dovish expectations for the longer term, hence AUD/USD sliced through the 0.76 the figure like butter. has dumped on the release of the Aussie GDP Q3 data that missed for the quarter after the RBA has expressed a more bullish rhetoric in yesterday's meeting. Currently, AUD/USD is trading at 0.7578, down -0.41% on the day, having posted a daily high at 0.7636 and low at 0.7572.
However, while the data is a miss, it is only a touch softer and bears are unable to progress through this congested support zone, despite the positive greenback environment. Also, lower iron ore prices and a big selloff in copper should keep the Aussie's downside underpinned, for at least a consolidation and closes below the 0.76 handle.
That is all we have for the Asian shift and instead, traders will look to the ADP report and NFP report at the end of the week ahead of next week's FOMC decision where a rate hike is expected.
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."