AUD/USD turns red as Australia's Q3 GDP prints below estimates

  • AUD/USD is reporting losses following a below-forecast Australian GDP data. 
  • Australia's economy grew at a slower rate in the third quarter. 
  • The data validates the market view that the RBA will cut rates to 0.5% next year. 

AUD/USD fell more than 10 pips to hit a session low of 0.6838 after the official data showed the Australian economy expanded at a slower pace in the third quarter.

The gross domestic product growth slowed to 0.4% quarter-on-quarter in the three months to September from the previous quarter's 0.5%. While the quarter-on-quarter figure missed the estimate of 0.5% by a narrow margin, the annualized GDP ticked higher to 1.7% from 1.4%, as expected.

Further, the final consumption expenditure rose just 0.3% quarter-on-quarter compared to the 1% growth seen in the preceding quarter.

The dismal data validates the market view that the Reserve Bank of Australia (RBA) will have to provide extra stimulus in 2020 to gradually push the unemployment rate down, generate better wages and household income growth and eventually lift inflation into the target band.  The central bank has delivered three rate cuts this year and is expected to cut rates by 25 basis points to a new record low of 0.75% in February. 

AUD/USD, therefore, has come under pressure following the GDP data. The losses could be extended further with fresh trade uncertainty and risk aversion in the equity markets. 

US President Donald Trump said overnight that he may delay a trade deal with China till after the 2020 presidential election. The US stocks dropped in response to Trump's comments with the Dow Jones Industrial Average falling by more than 1%. At press time, the futures on the S&P 500 are trading flat.

What's more, the news is crossing the wires via Reuters that the US House has passed a bill demanding sanctions on senior Chinese officials. The escalating tensions on the political front may further complicate the trade negotiations. 

The AUD/USD pair is currently trading near 0.6840, representing marginal losses on the day.

Technical levels


Today last price 0.6842
Today Daily Change 0.0005
Today Daily Change % 0.07
Today daily open 0.6844
Daily SMA20 0.6816
Daily SMA50 0.6807
Daily SMA100 0.6818
Daily SMA200 0.6919
Previous Daily High 0.6863
Previous Daily Low 0.6814
Previous Weekly High 0.68
Previous Weekly Low 0.6754
Previous Monthly High 0.6929
Previous Monthly Low 0.6754
Daily Fibonacci 38.2% 0.6844
Daily Fibonacci 61.8% 0.6833
Daily Pivot Point S1 0.6818
Daily Pivot Point S2 0.6791
Daily Pivot Point S3 0.6769
Daily Pivot Point R1 0.6867
Daily Pivot Point R2 0.6889
Daily Pivot Point R3 0.6916



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.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD bounces after upbeat COVID-19 cure news

EUR/USD is trading above 1.13, rebounding from the lows. Gilead reported that its drug Remdesevir substantially reduces mortality among COVID-19 patients. The news boosted stocks and weighed on the dollar. US coronavirus statistics are due out.


GBP/USD recaptures 1.26 as the market mood improves

GBP/USD is trading above 1.26 as the market mood improves and the safe-haven dollar retreats. Investors are shrugging off Brexit concerns and focusing on hopes to cure coronavirus. US COVID-19 statistics are due out.


XAU/USD consolidates daily gains above $1,800

After advancing to its highest level since September of 2011 at $1,818 on Wednesday, the XAU/USD pair staged a correction and briefly dropped below $1,800 on Thursday.

Gold News

Cryptocurrencies: War for dominance hit the bedrock of the market

Bitcoin tried to regain market share and activated sales in the Altcoin segment. BTC/USD, ETH/USD and XRP/USD are looking for supports and a rebound to push them to new elative highs. The current compression on the XRP/USD chart could trigger an exploding movement.

Read more

WTI once again breaks $40 per barrel after trading lower in early EU trade

There has been quite the bounce in WTI since the EU session after some strong selling pressure during Thursday and overnight. Once again on Friday's session, the price has taken the USD 40 per barrel handle. 

Oil News