AUDUSD Positive After Australia’s GDP Release02 March, 2016 by Aayush Jindal in AUDUSD, Fundamental Analysis, Market Analysis, Technical Analysis
AUDUSD Positive After Australia’s GDP Release
- Australian Dollar is trading higher and gained bids during the Asian session against the US Dollar.
- There was a resistance trend line formed on the hourly chart of the AUDUSD pair, which was broken during the upside drift.
- Today, the Australian Gross Domestic Product released by the Australian Bureau of Statistics posted a rise of 0.6% in the fourth quarter of 2015.
- In terms of the yearly change, the Australian Gross Domestic Product gained by 3%.
AUDUSD Technical Analysis
The AUDUSD pair spiked today after the release of the GDP figures. The pair managed to clear a resistance trend line formed on the hourly chart, which opened the doors for more gains.
The pair may be heading towards a major resistance area of 0.7250-60 where sellers defended the upside move on many occasions previously.
It would be interesting to see how the pair trades when it reaches the highlighted resistance zone in the short term.
US ADP Employment Change
Today, the US ADP Employment Change, which is a measure of the change in the number of employed people in the US will be released by the Automatic Data Processing, Inc. The forecast is slated for a rise of 185K jobs in February 2016, a bit less than the last rise of 205K jobs. Any major deviation in the result may cause swing moves in the US dollar moving ahead.
Australia’s Gross Domestic Product
Today, the Australian Gross Domestic Product, which is a measure of the total value of all goods and services produced by Australia was released by the Australian Bureau of Statistics. The market was expecting the Australian Gross Domestic Product to post a rise of 0.5% in the fourth quarter of 2015, compared with the preceding quarter. However, the outcome was above the forecast, as the Australian GDP grew by 0.6%.
In terms of the yearly change, the Australian Gross Domestic Product was forecasted to rise by 2.6% in the fourth quarter of 2015, compared with the same quarter a year ago. Again, the result was above the forecast and posted an increase of 3%.
The report stated “major contribution to economic growth this quarter came from Household final consumption expenditure, which contributed 0.4 percentage points, and Public gross fixed capital formation, which contributed 0.2 percentage points to GDP growth”.
Overall, the AUDUSD pair looks positive and may continue to trade higher.