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AUD/USD hits resistance on excellent GDP

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.

AUDUSD higher June 1 2016 on Australian GDP

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.