. Australian Dollar Surges to $0.66 After Robust GDP Growth

Australian Dollar Surges to $0.66 After Robust GDP Growth

06 Dec 2023

Australian Dollar Rises Following Positive GDP Data

The Australian dollar showed signs of recovery, reaching $0.66 and offsetting recent losses as investors absorbed the latest gross domestic product (GDP) report. The third-quarter GDP data revealed a 0.2% quarter-on-quarter expansion, falling short of expectations at 0.4% and marking the slowest growth in a year.

On an annual basis, Australia’s economy recorded a 2.1% growth in the September quarter, surpassing forecasts of 1.8%. The Aussie had faced downward pressure earlier in the week following the Reserve Bank of Australia’s decision to maintain the policy rate at 4.35%, aligning with market expectations.

The central bank highlighted its intention to assess the impact of interest rate increases on demand, inflation, and the labor market, emphasizing the need for time. The RBA acknowledged uncertainties surrounding household consumption outlook but recognized a moderation in inflation and easing conditions in the labor market.

AUD/USD Technical Overview

 Moving Averages:

  • Exponential:
  • MA 10: 0.66 (Negative Crossover – Bearish)
  • MA 20: 0.65 (Positive Crossover – Bullish)
  • MA 50: 0.65 (Positive Crossover – Bullish)
  • Simple:
  • MA 10: 0.66 (Negative Crossover – Bearish)
  • MA 20: 0.65 (Positive Crossover – Bullish)
  • MA 50: 0.64 (Positive Crossover – Bullish)

Indicators:

  • RSI (Relative Strength Index): 56.25 (Neutral Zone – Neutral)
  • Stochastic Oscillator: 56.20 (Neutral Zone – Neutral)

Resistance And Support Levels:

  • R1: 0.67
  • R2: 0.68
  • S1: 0.64
  • S2: 0.63

Overall Sentiment: Bullish Market Direction: Sell

Trade Suggestion:

  • Limit Sell: 0.65524
  • Take Profit: 0.63492
  • Stop Loss: 0.66279