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Market Analysis

Home » Featured » AUDUSD – US GDP Fails To Stop Upside

AUDUSD – US GDP Fails To Stop Upside

Posted by FXTimes in Featured - November 24th, 2015 2:49 pm GMT

Aussie dollar AUDNZD

Key Points

  • Aussie Dollar climbed higher during the past couple of sessions against the US Dollar.
  • There is a support trend line formed on the hourly chart, which is pushing the AUDUSD pair higher.
  • US Gross Domestic Product Annualized released by the US Bureau of Economic Analysis posted an increase of 2.1% in Q3 2015, which was more than the forecast of 2%.
  • US Goods Trade Balance was also above the forecast, and posted a deficit of $-58.41B in October 2015.

Technical Analysis

The AUDUSD pair performed well during the past two sessions, and after testing the 0.7150 support area it started to move higher. There is a support trend line formed on the hourly chart of AUDUSD, which is acting as a catalyst for the upside move.

AUDUSD

The pair is well above the 100 and 50 hourly simple moving averages, which is a positive sign for bulls and may take the pair towards the last high of 0.7248.

On the downside, the trend line and support area might continue to hold the losses.

US GDP

Today, there was a critical release in the US, as the Gross Domestic Product Annualized, which shows the monetary value of all the goods, services and structures produced within a country in a given period of time was reported by the US Bureau of Economic Analysis. The market was expecting an increase of 2% in Q3 2015. However, outcome was above the expectation, as the US GDP grew 2.1%.

The report stated that “increase in real GDP in the third quarter primarily reflected positive contributions from personal consumption expenditures (PCE), nonresidential fixed investment, state and local government spending, residential fixed investment, and exports that were partly offset by a negative contribution from private inventory investment. Imports, which are a subtraction in the calculation of GDP, increased”.

In short, the report was positive, but it looks like the risk sentiment was boosted, and as a result AUDUSD traded higher.

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