Aussie Falls On Disappointing GDP Data

Fundamental Analysis

* GDP Stumble: The Australian Dollar weakened against the U.S. Dollar following the release of weaker-than-expected Australian GDP data. According to the Australian Bureau of Statistics (ABS), Australia’s Gross Domestic Product (GDP) grew by 0.2% quarter-on-quarter (QoQ) in the second quarter (Q2) of 2024, slightly higher than the 0.1% growth in the first quarter. However, this figure fell short of the anticipated 0.3% increase. After adjusting for population growth, GDP contracted on a per capita basis for the sixth consecutive quarter, setting a new record.

Technical Analysis

* Technical Breakout: AUDUSD was traded lower following prior breakout below the previous support level 0.67000. MACD which illustrate strong bearish momentum signal suggest the pair to likely extend its losses.

*Resistance and Support: If the bearish momentum persists, there’s a strong likelihood that the price will potentially head towards 0.66400. Conversely, a potential reversal is also to be expected and the price could head back towards 0.67550 after it breach back above the level 0.67000.

Understand how technical analysis can help you in this trading opportunity.

Potential Risks

Moving ahead, traders are now focusing on the upcoming speech by Reserve Bank of Australia (RBA) Governor Michele Bullock on Thursday, to gather more insights into the central bank’s hawkish stance on monetary policy. Additionally, traders will also focus on more economic data such as the ISM Services PMI and Nonfarm Payrolls (NFP) to shed light on the potential size of an expected rate cut by the Fed this month.

Know how to manage trading risks with risk management strategies.

Monitoring

Stay updated on US and Australia data, central bank updates and any shifts in the US Dollar’s strength by following PU Prime’s market insights and daily financial news.

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Disclaimer: Trading derivatives involves high risks, and market conditions can change rapidly. The content is for informational purposes only and should not be considered as financial advice. Traders should conduct their own research and consider risk management strategies.