AUD/USD goes into consolidation after rising toward 0.7400

AUD/USD lost its traction after rising toward 0.7400 on Wednesday.
Australian economy grew at a stronger pace than expected in Q3.
US Dollar Index rebounds toward 91.50 ahead of mid-tier data.

Eren Sengezer FXStreet

The AUD/USD pair built on Tuesday's gains and rose to a daily high of 0.7393 during the Asian trading hours. However, with the cautious market mood allowing the USD to start gathering strength against its rivals, the pair turned south and was last seen trading with small gains at 0.7373.

AUD fails to capitalize on upbeat GDP data

The data published by the Australian Bureau of Statistics showed on Wednesday that the real Gross Domestic Product (GDP) in the third quarter expanded by 3.3% on a quarterly basis. This reading followed the 7.7% contraction recorded in the second quarter and beat the market expectation of 2.6%. Nevertheless, the positive impact of this report on the AUD remained short-lived.

On the other hand, Wall Street's record-setting rally on Tuesday caused the greenback to suffer heavy losses against its risk-sensitive rivals. The US Dollar Index (DXY) slumped to its lowest level since April 2018 at 91.10 but staged a technical correction during the European trading hours.

Ahead of the ADP Employment Change and the ISM NY Business Conditions Index data from the US, the DXY is up 0.1% on the day at 91.41.

In the meantime, the S&P 500 Futures are posting modest losses, suggesting that AUD/USD could find it hard to gather bullish momentum in the second half of the day if risk flows struggle to retake the control of financial markets.

Technical levels to watch for

AUD/USD

Overview
Today last price	0.7377
Today Daily Change	0.0008
Today Daily Change %	0.11
Today daily open	0.7369

Trends
Daily SMA20	0.7302
Daily SMA50	0.719
Daily SMA100	0.7195
Daily SMA200	0.6865

Levels
Previous Daily High	0.7374
Previous Daily Low	0.7338
Previous Weekly High	0.7399
Previous Weekly Low	0.7264
Previous Monthly High	0.7438
Previous Monthly Low	0.699
Daily Fibonacci 38.2%	0.736
Daily Fibonacci 61.8%	0.7352
Daily Pivot Point S1	0.7347
Daily Pivot Point S2	0.7325
Daily Pivot Point S3	0.7312
Daily Pivot Point R1	0.7383
Daily Pivot Point R2	0.7396
Daily Pivot Point R3	0.7418

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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