Australian Dollar Higher After Positive GDP Data
04 September 2019 - 12:59PM
RTTF2
The Australian dollar strengthened against its major
counterparts in the Asian session on Wednesday, after a data showed
that the economy expanded as expected in the second quarter.
Data from the Australian Bureau of Statistics showed that
Australia's gross domestic product gained a seasonally adjusted 0.5
percent on quarter in the second quarter of 2019.
That was in line with expectations and unchanged from the
previous three months following an upward revision from +0.4
percent.
On a yearly basis, GDP expanded 1.4 percent - again matching
forecasts and down from the downwardly revised 1.7 percent increase
in the three months prior.
Sentiment was also underpinned by China data showing fastest
private sector growth in four months in August.
Survey data from IHS Markit showed that the Caixin composite
output index climbed to 51.6 in August from 50.9 in July. A score
above 50 indicates expansion.
The aussie rose to a 9-day high of 0.6784 against the greenback,
from a low of 0.6754 hit at 5:30 pm ET. If the aussie rises
further, 0.71 is seen as its next resistance level.
The aussie climbed to a 9-day high of 72.01 against the yen,
from yesterday's closing value of 71.61. The next possible
resistance for the aussie is seen around the 79.5 level.
The latest survey from Jibun Bank showed that Japan services
sector activity accelerated in August, with a PMI score of
53.3.
That's up from 51.8 in July and it moves further above the
boom-or-bust line of 50 that separates expansion from
contraction.
The Australian currency appreciated to 1.6178 against the euro,
its strongest since August 1. The aussie is likely to find
resistance around the 1.60 level.
The aussie was trading higher at 1.0706 against the kiwi, up
from a low of 1.0663 seen at 5:00 pm ET. On the upside, 1.09 is
possibly seen as the next resistance level for the aussie.
The aussie spiked up to a new 2-week high of 0.9041 against the
loonie, from an early low of 0.9007. The aussie is seen finding
resistance around the 0.95 level.
Looking ahead, PMI reports from major European economies and
Eurozone retail sales for July are due in the European session.
In the New York session, U.S. and Canadian trade data for July
and Fed Beige book report are slated for release.
The Bank of Canada will announce its interest rate decision at
10:00 am ET. The BoC is widely expected to keep its policy rate
steady at 1.75 percent.
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