AUD/USD has seen a strong algo-led spike following better-than-expected growth figures in the country, with the Q4 GDP coming at +0.6% vs +0.4% expected, resulting in a 50 pips pop from 0.7172 towards 0.7225.
According to the ABS: “The major contribution to economic growth this quarter came from Household final consumption expenditure, which contributed 0.4 percentage points, and Public gross fixed capital formation, which contributed 0.2 percentage points to GDP growth.”
AUD/USD technicals
Prior to the Australian GDP figures, Valeria Bednarik, Chief Analyst at FXStreet, said: “The technical outlook is bullish, as in the 1 hour chart, the price has quickly recovered on brief dips below a bullish 20 SMA, whilst the technical indicators have turned higher after a limited downward move, well above their mid-lines.”
“In the 4 hours chart, the price held above its 200 EMA, while it’s currently advancing above a mild bearish 20 SMA, and the technical indicators are crossing their mid-lines towards the upside. The pair has met selling interest in the 0.7240/60 region since early February, which means that the pair needs to break above this level to be able to rally further.”
(Market News Provided by FXstreet)
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