Q2 GDP in Australia was reported to have grown 0.6%. This is below the 1.4% in Q1, and also missed forecast of 0.8% reading. This is the type of growth data that will continue fueling expectation of an RBA rate cut later this year. The AUD/USD continued its decline.
AUD/USD 1H Chart 9/5/2012 6:54AM EDT
The 1H chart shows the AUD/USD in a persistent bearish momentum as the RSI tags 30, holds below 60, and continues to tag 30. The moving averages here are in bearish alignment, with the largest period (200) furthest above price action down to the smallest period (8) closest to price action.
The daily chart shows that the 9/5 bearish attempt has broken a pivot and 38.2% retracement in the 1.0220-1.0230 area. As noted in the previous update, this exposes the 1.01 (5.0% retracement and support pivot from 7/11, and the the area from 0.9980 (61.8% retracement) to 1.00 (psychological support).
AUD/USD Daily Chart 9/5/2012 6:57AM EDT
Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist for FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
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