AUDUSD Positive After Australia’s GDP Release

AUDUSD Positive After Australia’s GDP Release

Key Highlights            

  • 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.

AUDUSD

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%.

AU GDP

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.



Aayush Jindal

Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis, and has spent over a decade as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets.

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