Home AUD/USD drops to lowest since Jan. 4 on below-forecast Aussie Q4 GDP
FXStreet News

AUD/USD drops to lowest since Jan. 4 on below-forecast Aussie Q4 GDP

  • A weaker-than-expected Aussie Q4 GDP reading is pushing AUD/USD lower.  
  • The dismal data validates RBA’s recent decision to move away from long-held tightening bias and could force the central bank to adopt a dovish language.  

The offered tone around the Aussie dollar strengthened, pushing AUD/USD down to 0.7052 – the lowest level since Jan. 4 – after the Aussie Q4 GDP reading printed below estimates.  

The data released by the Australian Bureau of Statistics soon before press time showed the economy expanded 0.2 percent quarter-on-quarter in the fourth quarter, missing the forecast of 0.3 percent growth. The annualized growth rate cooled to 2.3 percent from the previous quarter’s print of 2.8 percent.  

A below-forecast GDP validates RBA’s recent decision to drop its long-standing prediction that next move in interest rates was likely to be upwards.  

As a result, the Aussie dollar took a hit immediately after the release of the dismal data and could test the support at 0.7021 (Oct. 26 low) in the next few hours.  

Technical Levels

 

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.