Aussie GDP Beats and the AUD/USD Rallies

The AUD/USD has been one of the busiest pairs this week as a slew of top-tier data continues to come across the wires.

Today we saw a beat with GDP. Coming in at 1.0% vs 0.9% for the quarter. This is another strong number in what has been one of a few things to give the AUD a lift this week.

Yesterday, we got a bit of dovish RBA statement, with once again no change to official interest rates. This, however, comes on the back of a number of stronger than anticipated releases, including retail sales from earlier in the week.

Overall the data hasn’t been too bad but it is looking more and more likely that we won’t be seeing any interest rate hikes this year. The Aussie economy just isn’t at the same place as the US and that should weigh on the price of the AUD/USD in the months ahead.

Technical Outlook

The AUD/USD has been range-bound this week and while we’ve seen some big moves, we keep on reverting.

Price ran as high as 0.7650 after strong retail sales and corporate earnings, but yesterday’s RBA fizzer has seen as sink back down. In the end, the AUD was yesterday’s worst performer.

0.7600 is now support for us, however, I’m more interested in seeing if this push through 0.7650 can hold up.

I suspect there will be a fair bit of work to do to get us through the 0.7670 region, but we might get a pop and retrace.

AUD/USD – 240 min Chart.