AUD/USD analysis: Aussie holds on to GDP triggered gains

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7665

Australian AIG Performance of Construction Index and Trade Balance data coming up.
AUD/USD trading a few pips above a major Fibonacci resistance.

The AUD/USD pair reached a new 6-week high, extending its gains up to 0.7676, getting a boost at the beginning of the day from better-than-expected local figures, as the economic growth was even better-than-expected in the Q1 of the year, up 1.0% vs. the forecast 0.9%. Also, the last quarter of 2017 was upwardly revised to 0.5% from a previous estimate of 0.4%. The US had nothing actually relevant to offer, but the pair paused its rally and correct alongside with equities early US session. Nevertheless, it resumed its advance as Wall Street rallied, ending the day at 0.7665. During the upcoming Asian session, Australia will release the May AIG Performance on Construction Index for May, and its April trade balance figures, expected to post a monthly surplus of 1,0M. Exports and Imports grew by 1.0% in the previous month, and a nice bounce in exports will likely gave the Aussie an additional boost. The AUD/USD pair broke above the 61.8% retracement of its latest decline ay 0.7660, holding nearby and biased higher, as the pair is developing above all of its moving averages in the 4 hours chart, with the 20 SMA heading sharply higher above the larger ones. The Momentum indicator in the mentioned chart has eased toward its mid-line, as the pair failed to break above its daily high, but the RSI indicator holds near overbought readings, which alongside with moving averages support additional gains ahead.

Support levels: 0.7660 0.7620 0.7590

Resistance levels: 0.7660 0.7700 0.7740

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Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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