The Australian economy grew by 1.1% in Q1 2016, way above 0.6% expected. In American terms, this is around 4.5% annualized. In addition, this came on top of an upwards revision for Q4 2015 from 0.6% to 0.7%.
AUD/USD extends its gains and knocks on the door of 0.73, a strong line of resistance.
Year over year, GDP is up 3.1%, the fastest growth since Q3 2012. Part of this strong growth comes on top of weak inflation, with the deflator down 0.6%. Nevertheless, this still seem positive.
According to statisticians in Australia, the economy is moving away from mining and towards other sectors. Exports of other products are moving up, taking advantage of a weaker exchange rate. Household consumption is looking positive thanks to high employment.
AUD/USD extended its gains within the 0.72 handle and reached a high of 0.7298, just under 0.73 that was last tackled in mid-May. Further resistance awaits at 0.7375. Support is at 0.7250.
More: AUD/USD: Trading the Australian GDP
Here is how it looks on the chart.
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