AUD/USD: Australia’s economic growth slowed more-than-estimated in 3Q 2017


AUDUSD Movement

For the 24 hours to 23:00 GMT, the AUD rose 0.08% against the USD and closed at 0.7606.

LME Copper prices declined 2.4% or $162.0/MT to $6645.0/MT. Aluminium prices declined 0.02% or $0.5/MT to $2052.0/MT.

In the Asian session, at GMT0400, the pair is trading at 0.7580, with the AUD trading 0.34% lower against the USD from yesterday’s close, after Australia’s third quarter economic growth came in weaker-than-expected.

Data indicated that Australia’s seasonally adjusted gross domestic product (GDP) expanded 0.6% in the three months to September, amid a sharp slowdown in household spending, thus justifying the Reserve Bank of Australia’s decision of keeping interest rates on hold for longer. The nation’s GDP had registered a rise of 0.8% in the prior quarter, while markets had expected for an advance of 0.7%.

The pair is expected to find support at 0.7550, and a fall through could take it to the next support level of 0.7520. The pair is expected to find its first resistance at 0.7632, and a rise through could take it to the next resistance level of 0.7684.

Looking ahead, traders would focus on Australia’s AiG performance of construction index for November as well as trade balance data for October, both due overnight.

The currency pair is trading below its 20 Hr and 50 Hr moving averages.

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