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Australian dollar holds high ground on strong GDP, good

While a hawkish Fed boosts the USD higher, one currency stands out against this storm, and that is the Australian dollar, holding its ground and not retreating.

The Aussie has two good reasons to rise. The economy grew by 1.1%, in Q4 2016, much stronger than 0.8% expected. It is also a big bounce from the contraction of 0.5% that was recorded back in Q3. While that  shrinkage of the Australian economy caused only a few to worry about an outright recession, the big bounce is clearly good news.

Year over year, output expanded by 2.4%, also  above 2% predicted.  Australian analysts responded positively to the figures and found it hard to find anything to complain about.

The second piece of good news came from Australia’s No. 1 trading partner: China. The independent Caixin manufacturing PMI came out at 51.6 points, reflecting slightly stronger growth. China’s  manufacturing sector imports from China. A score of 51.2 was expected.

AUD/USD currently trades at 0.7640. While this is  slightly in the  lower end of the 0.7610 to 0.77 levels, other currencies are suffering under the weight of the US dollar.

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.