“¢ Aussie GDP growth betters expectations and helps regain strong traction.
“¢ The bullish move seemed little affected by a goodish pickup in the US bond yields.
After yesterday’s modest retracement, the AUD/USD pair regained positive traction on Wednesday and jumped to fresh six-week tops.
With investors looking past Tuesday’s RBA monetary policy update, the pair resumed with its recent recovery move from 11-month lows, set of May 9th, and got an additional boost from today’s upbeat Aussie GDP growth figures, with bettered already elevated expectations.
According to the official report, Gross Domestic Product rose 1% during the first quarter of 2018 and the yearly growth stood at 3.1%, marking the best y/y gain since the second quarter of 2016.
This coupled with some fresh technical buying, especially following an overnight rebound from a previous strong resistance, now turned support near the 0.7600-0.7595 region, turned out to be one of the factors supportive of the up-move.
The price action, however, seemed little influenced by a goodish pickup in the US Treasury bond yields, which was largely negated by a weaker tone surrounding the US Dollar. Bulls now eye a decisive move beyond 100-day SMA barrier before positioning for any further near-term up-move for the major.
Technical levels to watch
A convincing move beyond the 0.7670 region (100-DMA) is likely to assist the pair to reclaim the 0.7700 handle and head towards testing its next hurdle near the 0.7740-50 region. On the flip side, 0.7645 level now seems to protect the downside, which if broken could drag the pair back towards retesting the 0.7600 round figure mark.
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