The Australian Dollar fell on Wednesday after official Gross Domestic Product figures for the year’s third quarter came in below expectations. The 6 December AUDUSD Technical Outlook gives more insight on this.
6 December, GKFX –Having hit a three-day low of 0.7572 on disappointing Australian third quarter GDP release in early Asia, the AUD/USD pair is seen consolidating the sell-off, as we head towards the European open.
- Aus Q3 GDP comes in a tad softer.
- Recovery capped by 10 & 20-DMA confluence.
- All eyes on the US ADP jobs.
AUD/USD headed to test Friday’s high at 0.6912
The spot is in the red zone for the third straight session and remains poised to test the five-month lows reached last month at 0.7534. The bearish momentum in the Aussie picked-up pace after the Australian Q3 growth numbers showed that the economy expanded by 0.6% versus a 0.9% increase seen in Q2 and 0.7% expected.
Moreover, persisting risk-off moods in the markets amid the latest North Korean headlines, also exacerbated the pain in the higher-yielding currency, AUD while Australia’s political uncertainty on the back of the Australian High Court ruling on citizenship further dented the sentiment.
However, the sell-off lost legs near 0.7570 levels, as ongoing selling in the US dollar across its main peers, rescued the bulls. With the Aus GDP data out of the way, all eyes remain on the US ADP jobs report and Aus trade balance due tomorrow for the next direction.
6 December AUDUSD Technical Outlook
Jim Langlands at FX Charts writes: “..I, therefore, suspect that further upside for the Aud will be limited and selling into rallies is still preferred.”
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