AUD dips following Trade Data & RBA Decision
|AUDUSD, Daily
The Aussie dollar has underperformed following the release of Australian trade numbers earlier today, where a tumble in net exports prompted economists to trim Q3 GDP forecasts by up to 0.2 percentage points. The growth data is due tomorrow and expectations are for 0.2% q/q growth, though some analysts are flagging of negative number, which would mark the first GDP contraction in five-and-a-half years. The RBA left policy unchanged at its December review today, as was widely expected, and the statement made only cosmetic tweaks to leave the main takeaway as being that “inflation is expected to remain low for some time.” AUDUSD ebbed to a low of 0.7441, about 30 pips down on Sydney opening levels.
Technically, the Moving Averages are mixed and unaligned with weakness suggested as the pair trades below the 20, 50 and 200 Simple MA’s, the Parabolic SAR and MACD remain positive, whilst the short term RSI is neutral. Resistance remains at 0.7584 (the 38.2 Fibonacci retracement level from the November move down), the psychological 0.7500 and the 200 DMA at 0.7530. The consolidation is likely to persist and a SHORT entry was taken at 0.7450 with Target 1 0.7400 and Target 2 0.7300.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.