Dismal Aussie GDP release pushes AUD/USD below 0.73

Australia September quarter GDP prints well below estimates, validating the argument that the RBA will keep rates unchanged through 2019.
The AUD/USD has dropped more than 50 pips to levels below 0.73.

Omkar Godbole FXStreet Contributor

The Aussie dollar is being offered across the board in response to dismal Australia third quarter GDP data.

The AUD/USD pair is currently trading at 0.7307, having dropped more than 50 pips to a session low of 0.7295 a few minutes before press time.

The Australian economy grew by 0.3 percent quarter-on-quarter in a seasonally adjusted chain volume terms in the September quarter, missing the forecasted print of 0.6 percent by a big margin. Notably, the growth rate has cooled significantly from the previous quarter's print of 0.9 percent.

The annualized growth rate also dropped to 2.8 percent from the previous quarter's reading of 3.4 percent.

The details reveal that net exports contributed 0.3 percentage points to GDP growth driven by a decline in imports. Meanwhile, household consumption expenditure increased by 0.3% during the quarter, contributing 0.2 percentage points to GDP growth.

The sharp slowdown in the growth rate will likely reinforce expectations that the Reserve Bank of Australia (RBA) would keep interest rates at record low of 1.5 percent in 2019 and for a better part of 2020.

As a result, the Aussie dollar could extend the decline, possibly toward the 100-day moving average (MA) line, currently located at 0.7239.

AUD/USD Technical Levels

AUD/USD

Overview:
    Today Last Price: 0.7347
    Today Daily change: 11 pips
    Today Daily change %: 0.150%
    Today Daily Open: 0.7336
Trends:
    Previous Daily SMA20: 0.7267
    Previous Daily SMA50: 0.7184
    Previous Daily SMA100: 0.7242
    Previous Daily SMA200: 0.7419
Levels:
    Previous Daily High: 0.7394
    Previous Daily Low: 0.7326
    Previous Weekly High: 0.7345
    Previous Weekly Low: 0.7199
    Previous Monthly High: 0.7345
    Previous Monthly Low: 0.7072
    Previous Daily Fibonacci 38.2%: 0.7352
    Previous Daily Fibonacci 61.8%: 0.7368
    Previous Daily Pivot Point S1: 0.731
    Previous Daily Pivot Point S2: 0.7284
    Previous Daily Pivot Point S3: 0.7242
    Previous Daily Pivot Point R1: 0.7378
    Previous Daily Pivot Point R2: 0.742
    Previous Daily Pivot Point R3: 0.7446

Author

Omkar Godbole

FXStreet Contributor

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

EUR/USD trims gains, hovers around 1.1900 post-US data

EUR/USD trades slightly on the back foot around the 1.1900 region in a context dominated by the resurgence of some buying interest around the US Dollar on turnaround Tuesday. Looking at the US docket, Retail Sales disappointed expectations in December, while the ADP 4-Week Average came in at 6.5K.

GBP/USD comes under pressure near 1.3680

The better tone in the Greenback hurts the risk-linked complex on Tuesday, prompting GBP/USD to set aside two consecutive days of gains and trade slightly on the defensive below the 1.3700 mark. Investors, in the meantime, keep their attention on key UK data due later in the week.

Gold loses some traction, still above $5,000

Gold faces some selling pressure on Tuesday, surrendering part of its recent two-day advance although managing to keep the trade above the $5,000 mark per troy ounce. The daily pullback in the precious metal comes in response to the modest rebound in the US Dollar, while declining US Treasury yields across the curve seem to limit the downside.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash (BCH) trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.