Australia’s Gross Domestic Product has arrived and beat expectations sending AUD marginally higher on the release.
GDP data
AUSTRALIA Q4 REAL GDP +0.5 PCT QTR/QTR, S/ADJ (REUTERS POLL +0.3 PCT)
AUSTRALIA Q4 REAL GDP +2.2 PCT YR/YR, S/ADJ (REUTERS POLL +1.9 PCT)
AUSTRALIA Q4 FINAL CONSUMPTION EXPENDITURE +0.5 PCT, S/ADJ
AUSTRALIA Q4 GROSS FIXED CAPITAL EXPENDITURE -1.0 PCT, S/ADJ
AUSTRALIA Q4 CHAIN PRICE INDEX -1.2 PCT
AUD/USD reaction
AUD/USD popped to 0.6597 on the knee jerk.
More to come …
Analysis prior to the event
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Australian GDP Preview: How will GDP impact AUD?
Depending on today’s outcome, the levels of interest are seen as 0.6544 and 0.6721 on the wide-based on the volume profiles and points of control of the 28th Feb swing low-post-Fed rate cut rally and the 2020 range respectively. The former has a confluence of a 50% mean reversion of the range while the latter has a 50% mean reversion confluence of the 2020 range. However, the 200 four-hour moving average falls in at 0.6700 and we also see strong support at 0.6670 built up over Feb business, where sellers would be expected to defend shorts in a higher volume node area. To the downside, 0.6540, 0.6510 and 0.6480 are the final supports on the 2020 value range. Should the data come out in line with expectations, we can expect to see some weakness in AUD considering the weakness in the economy. Immediate support comes as 0.6570.
Description
The Gross Domestic Product released by the Australian Bureau of Statistics is a measure of the total value of all goods and services produced by Australia. The GDP is considered as a broad measure of the economic activity and health. A rising trend has a positive effect on the AUD, while a falling trend is seen as negative (or bearish) for the AUD.
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