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An Australian Q1 GDP reading in-line with the market’s expectations at -0.3% will keep the Aussie bullish potential intact and heading towards the psychological 0.7000 level, FXStreet’s Chief Analyst Valeria Bednarik reports.

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Key quotes

“The economy is expected to have shrunk by 0.3% in the three months to March, while the economy is expected to have grown by 1.4% when compared to the first quarter of 2019.”

“According to the 4-hour chart, the AUD/USD pair is extremely overbought, yet there are no signs of an imminent bearish correction, as technical indicators consolidate near their recent highs. Meanwhile, the Aussie is firmly above its moving averages, with the 20 SMA currently at around 0.6720.”

“A Q1 GDP reading in-line with the market’s expectations, or even slightly worse, should keep the pair on its bullish track toward the psychological 0.7000 threshold. A pullback would find an immediate support level at 0.6810, followed by the 0.6750 price zone.”