News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • $USDJPY bull thesis appears quite constructive. Technicals show topside breakout above trend resistance following a period of consolidation. Bond yields providing the fundamental catalyst. Eyes on Aug/YTD highs. A broad-based deterioration in market sentiment poses downside risk. https://t.co/AazskXGjHq
  • WTI posting another session of strong gains, currently flirting with the 74 handle $CL #Oil #OOTT https://t.co/oYnm2OYRky
  • The New Zealand Dollar’s bullish breakout attempt in early-September was rebuffed. Price action at the end of the month is telling a different story. Get your market update from @CVecchioFX here:https://t.co/AquMSrssne https://t.co/DtFuFfrS7Q
  • So much for that Evergrande recovery. Shares of the troubled Chinese property developer are down approximately -12% today following yesterday's impressive rally (biggest in a year) https://t.co/Nome25d9Bt
  • Retail trading platform Robinhood announces hire of new Chief Compliance Officer amid regulatory scrutiny
  • There is a ridiculous number of scheduled Fed speeches on the docket next week. Powell specifically will be speaking multiple times including at an ECB hosted forum on central banking (which also has a panel with Fed, ECB, BOE and BOJ heads)
  • USD Ascending Triangle, Bullish for Q4 - #DXY chart on @TradingView https://t.co/iCnRSo9N4V
  • Credit rating agency Standard & Poor's is due to give its sovereign credit rating update on Germany today ahead of weekend national elections
  • RT @BIS_org: Since the early 1990s, changes in the #MonetaryPolicy stance have affected a rather narrow set of prices – mostly in the servi…
  • Huawei's CFO Meng Wanzhou reached deal with the US Dept of Justice to return her to China - Dow Jones
Australian Dollar Back Under 0.80 vs USD on In-Line 2Q GDP

Australian Dollar Back Under 0.80 vs USD on In-Line 2Q GDP

David Cottle, Analyst

Talking Points

  • AUD/USD slipped back as Australian growth failed to beat estimates
  • Some perky data for the same period may have raised false hopes
  • Still, the Aussie remains quite elevated, close to this year’s peak

Just getting started in the AUD/USD trading world? Our beginners’ guide is here to help

The Australian Dollar slipped a little Wednesday in the immediate aftermath of official growth data which came in broadly as expected.

Gross Domestic Product rose by 0.8% on the quarter, and 1.8% on the year. This matched market forecasts but, in the wake of some strong construction and export data for the same period, investors may have dared to hope for more. If so, they were out of luck. Still, the outcome is better than the first quarter’s respective gains of 0.3% and 1.7% andis arguably not too bad given Hurricane Debbie’s baleful impact on economic activity.

Still, the Australian Dollar slipped back under US$0.80 on the news after rising steadily this week. Falls were not heavy though and AUD/USD retains solid investor support.

Australian Dollar Back Under 0.80 vs USD on In-Line 2Q GDP

The growth numbers come at a crucial juncture for the year’s Australian Dollar trade. Admittedly thanks as much to US Dollar weakness as anything else, AUD/USD has poked above a trading range which has limited progress in either direction for weeks.

Australian Dollar Back Under 0.80 vs USD on In-Line 2Q GDP

However, as the pair pushes back towards its highs for 2017, which are also peaks not seen since 2015, the possible reaction of the Reserve Bank of Australia will be key. The RBA is not comfortable with the Aussie’s altitude which it sees as threatening both domestic growth and its own inflation-target mandate.

It reminded us of all this on Tuesday after leaving interest rates on hold at record lows. Of course, the RBA will also often admit that US Dollar weakness is beyond its control and, if it sticks to that line bulls may be emboldened. However, it seems at least as likely that more forceful jawboning against Aussie strength will be hears if those bulls push too far further.

--- Written by David Cottle, DailyFX Research

Contact and follow David on Twitter:@DavidCottleFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES