After weeks of sharp gains, the AUDUSD pair slipped today after the GDP numbers from Australia. The pair declined from a high of 0.7395 to an intraday low of 0.7288. The decline wiped out the gains made this week.
December 5, OctaFX – The Australian dollar fell after the third quarter GDP numbers missed the consensus estimates. The numbers from the Australia Bureau of Statistics showed that the economy expanded by 2.8% in the quarter.
This was lower than the estimated 3.3%. On a quarterly basis, the economy expanded by 0.3%, which was lower than the estimated 0.6% and the slowest expansion in three years. The GDP numbers dampened the market after a hawkish statement from the Reserve Bank of Australia yesterday.
AUDUSD technical analysis
The RSI declined from a high of 70, to the current 47 and is likely to continue the declines. The pair’s price is along the 42-day EMA and below the 21-day EMA.
At the same time, the Average True Range is at the highest level since September this year, which is a sign of increased volatility. The pair will likely continue the declines before resuming the upward trend.
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