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3 Jun 2015
AUD/USD eases-off fresh weekly highs, back below 0.78
FXStreet (Mumbai) - The Australian dollar paused its upward rally and eased-off session highs versus the US dollar in the mid-Asian session, sending AUD/USD back below 0.78 barrier, as markets digest the latest upbeat Aus GDP data while a broadly weaker greenback also supports.
AUD/USD drops from 0.7819
Currently, the AUD/USD pair trades 0.30% higher at 0.7795, retracing from fresh weekly highs reached at 0.7819 shortly after the GDP data release. The Aussie extends previous gains and was further boosted Australia’s GDP data surprised markets on the upside.
Australia's economy grew 0.9% in the March quarter, led by higher exports and consumption expenditure. Markets had forecast GDP growth of 0.7% in first quarter, after the economy grew only 0.5% in the December quarter.
Moreover, broad based US dollar weakness also helped the Aussie to emerge from near six-year lows around 0.76 handle while RBA’s unchanged monetary policy stance also buoyed the AUD/USD pair.
The greenback had to deal with several obstacles during the last US session, starting with downbeat factory orders, to a cautious Federal Reserve official and finally with optimistic sentiment toward a Greek solution.
Meanwhile, markets now shift their focus towards a set of US macro release later in the day for further impetus on the pair.
AUD/USD Technical Levels
The pair has an immediate resistance at 0.7819 (Today’s High) levels, above which gains could be extended to 0.7841 (May 25 High) levels. On the flip side, support is seen at 0.7756 (Today’s Low) levels from here it to 0.7700 levels.
AUD/USD drops from 0.7819
Currently, the AUD/USD pair trades 0.30% higher at 0.7795, retracing from fresh weekly highs reached at 0.7819 shortly after the GDP data release. The Aussie extends previous gains and was further boosted Australia’s GDP data surprised markets on the upside.
Australia's economy grew 0.9% in the March quarter, led by higher exports and consumption expenditure. Markets had forecast GDP growth of 0.7% in first quarter, after the economy grew only 0.5% in the December quarter.
Moreover, broad based US dollar weakness also helped the Aussie to emerge from near six-year lows around 0.76 handle while RBA’s unchanged monetary policy stance also buoyed the AUD/USD pair.
The greenback had to deal with several obstacles during the last US session, starting with downbeat factory orders, to a cautious Federal Reserve official and finally with optimistic sentiment toward a Greek solution.
Meanwhile, markets now shift their focus towards a set of US macro release later in the day for further impetus on the pair.
AUD/USD Technical Levels
The pair has an immediate resistance at 0.7819 (Today’s High) levels, above which gains could be extended to 0.7841 (May 25 High) levels. On the flip side, support is seen at 0.7756 (Today’s Low) levels from here it to 0.7700 levels.