When is the Aussie GDP, and how could it affect the AUD/USD?
Australian GDP overview
The next installment of Australia q/q GDP figures is due at 01:30 GMT early Wednesday, and the broader market is expecting a contracted reading of 0.7% for 2018's Q2 compared to the first quarter's showing of 1.0%. Despite the mild step down that markets are anticipating, Australia's economy is on pace to set a strong lead for the first half of 2018, and Aussie traders will be hopeful to keep any good news they can find close to heart.
The AUD remains in a precarious position against the US Dollar, but underlying drivers of Australia's GDP may lead to a better-than-expected reading, according to analysts at TD Securities: "At last Q2 GDP is here and after a slight downward tweak (public investment failed to pop as we expected) we also highlight yet again that we don't know 27% of GDP (consumption not covered by the retail sales reports). Our tracking is now +0.8%/q (mkt +0.7%). An annual rate around 3% means the RBA remains on track, achieving above-trend growth for H1 2018 (as it said yesterday in the policy statement)."
How could it affect the AUD/USD?
With the AUD/USD twisting near 0.7200 just in front the GDP release, recent bearish action is still hanging heavily over the major pair, and as FXStreet Chief Analyst Valeria Bednarik notes on the AUD's technical positioning ahead of the GDP reading: "Technically, the risk remains skewed to the downside, given that in the 4 hours chart, the early advance met sellers around a firmly bearish 20 SMA, currently offering a dynamic resistance at around 0.7210. Technical indicators in the mentioned chart remain within negative territory, lacking directional strength."
Support levels: 0.7160 0.7130 0.7100
Resistance levels: 0.7210 0.7240 0.7275
Key notes
Aussie falls due to strengthening Greenback despite neutral RBA
AUD/USD analysis: steady near multi-year lows
About the Australian GDP
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.