AUD/USD jumps to fresh session high as Aussie Q3 GDP beats estimates

AUD/USD jumps 10 pips to clock a fresh session high near 0.7390.
Australia's economy chalked up a bigger-than-expected economic rebound in the third quarter.
The US stimulus expectations keep the dollar under pressure.

Omkar Godbole FXStreet Contributor

AUD/USD is extending gains, with Australia's economy staging a bigger-than-expected rebound in the third quarter.

The data released soon before press time showed Australia's Gross Domestic Product (GDP) rose 3.3% quarter-on-quarter in the July to September period, beating the expected growth rate of 2.6% by a significant margin. The economy had contracted by 7% in the second quarter. The annualized growth rate stood at -3.8% versus -6.3% in the third quarter.

The above-forecast quarter-on-quarter data validates the Reserve Bank of Australia's claim that the economy has been outperforming its expectations and weakens the case for additional stimulus. The central bank left key policy tools unchanged on Tuesday, having reduced the benchmark interest rate and the yield curve control target to 0.10% in November.

AUD/USD jumped from 0.7380 to 0.7390 following the GDP release, extending the early rise from 0.7362. The US Congress' renewed push for or federal aid to business, state, and local governments facing the second wave of coronavirus has revived expectations for bigger fiscal stimulus. As such, risk assets, including the Aussie dollar, are likely to trade better bid during the day ahead.

Technical levels

AUD/USD

Overview
Today last price	0.7378
Today Daily Change	0.0009
Today Daily Change %	0.12
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

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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