The Australian economy grew by 0.3% in Q1 2017. This is slightly better than 0.2% expected.Year over year, the growth rate was 1.7%, better than 1.6% expected.
More importantly, real forecasts were probably lower.
The Reserve Bank of Australia hinted about a weak GDP growth number and said it is just temporary and that growth would pick up. In addition, Australia’s current account came out worse than predicted, also pushing expectations for the GDP number a bit lower.
The Australian dollar was recently hit by Chinese data while ignoring positive Australian figures. While the GDP growth number is weaker than in previous quarters and not a great number on its own, the reaction shows that Australian figures return to having a positive influence on the pair.
AUD/USD extends gains
The Australian dollar advanced for the fourth consecutive day, reaching a new high of 0.7543. Resistance awaits at 0.7560, followed by the super strong number of 0.7610.
Support awaits at 0.7520, followed by 0.7490, 0.7440 and 0.7375. Will we see a correction before the next move to the upside?
Here is the AUD/USD daily chart. Note the higher low that the pair posted.
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