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  • Disappointing Australian GDP data weighs on the AUD.
  • US Dollar Index moves sideways below 97.
  • Coming up: ADP employment report and trade balance data from the U.S.

The AUD/USD pair came under heavy bearish pressure in the Asian session after the data published by  the Australian Bureau of Statistics showed that the real GDP in Australia expanded by 2.3% in the fourth quarter after third quarter’s 2.8% growth and gell short of the market expectation of 2.5%. Following a sharp drop to its lowest level since the first week of January, the pair has gone into a consolidation phase but struggled to stage a recovery with the greenback preserving its strength for the sixth straight day. At the moment, the pair is down 0.77% on the day at 0.7027.

Analysing the details of the GDP report, “Growth is clearly being held down by a weak household sector. Housing construction fell 3.4% q/q, while household consumption was up just 0.4% q/q. Interestingly, household consumption growth was weakest in NSW, where spending grew just 0.1% in the quarter, providing some evidence of a wealth effect,” Felicity Emmett, senior economist at ANZ, noted.

Later in the day, the ADP will release the U.S. private sector employment report. Ahead of that data, the US Dollar Index continues to move sideways a little below the 97 mark. In the early Asian session on Thursday, the AiG Performance of Construction Index from Australia will be looked upon for fresh impetus.

Technical levels to consider


       Daily SMA20:  0.7117
       Daily SMA50:  0.7135
       Daily SMA100:  0.7163
       Daily SMA200:  0.7248
       Previous Daily High:  0.7097
       Previous Daily Low:  0.7059
       Previous Weekly High:  0.7199
       Previous Weekly Low:  0.7069
       Previous Monthly High:  0.7285
       Previous Monthly Low:  0.7053
       Daily Fibonacci 38.2%:  0.7074
       Daily Fibonacci 61.8%:  0.7083
       Daily Pivot Point S1:  0.7064
       Daily Pivot Point S2:  0.7042
       Daily Pivot Point S3:  0.7026
       Daily Pivot Point R1:  0.7103
       Daily Pivot Point R2:  0.7119
       Daily Pivot Point R3:  0.7141