After the RBA left rates unchanged at record levels, monetary policy remaining accommodative, today’s data has just arrived in the form of gross domestic product as follows …
- AUSTRALIA T1 REAL GDP -0.3 pct QTR / QTR, S / ADJ (REUTERS POLL -0.3 pct)
- 02-Jun-2020 19:30:01 – AUSTRALIA T1 REAL GDP +1.4 PCT YR / YR, S / ADJ (REUTERS POLL +1.4 PCT)
- 02-Jun-2020 19:30:01 – AUSTRALIA T1 FINAL CONSUMPTION EXPENSES -0.4 pct, S / ADJ
- 02-Jun-2020 19:30:01 – AUSTRALIA T1 GROSS FIXED CAPITAL EXPENDITURE -0.8 PCT, S / ADJ
- 02-Jun-2020 19:30:01 – AUSTRALIA Q1 CHAIN CHICE INDEX +1.1 PCT
more soon …
Description of gross domestic product
The gross domestic product published by the Australian Bureau of Statistics is a measure of the total value of all goods and services produced by Australia. GDP is considered a broad measure of economic activity and health. An upward trend has a positive effect on the AUD, while a downward trend is considered negative (or downward) for the AUD.
AUD reached new heights during the Asia session, extending NY’s gains.
Westpac highlighted a number of bullish currency entries, including: global equities, iron ore greater than $ 100 / tonne, a current account surplus for a full year, outperformance on the containment of Covid-19 and RBA at ease with the current strategy parameters.
AUD / USD levels
However, as discussed here, the currency has returned to where the markets agreed on prices for the whole of H2 2019. It will take a systemic shift in the AUD markets to take a bullish extension at this point. The dollar may well be ripe for an upward correction, according to the following analysis:
As for the Australian chart, failures to return below the long-term trend line, the bears could target a 61.8% retracement from the previous pulse to the previous resistance structure. On the other hand, if the trend line continues, it is a blue sky from here for a new cyclical uptrend. The RBA may well be the best bet in town, especially if the “Federal Reserve has no choice but to go further to save its economy from collapse.”
Table to follow …