Investing.com - The Australian dollar fell against its U.S. rival during Wednesday’s Asian session following the release of Australia’s first-quarter GDP report.
In Asian trading Wednesday. AUD/USD fell 0.36% to 0.9615. The pair was likely to find support at 0.9598, Monday's low and resistance at 0.9792, Monday's high.
Australia’s economy, the world’s 12th-largest grew 0.6% in the first quarter from the fourth quarter and 2.5% on a year-over-year basis, according to a report from the Australian Bureau of Statistics. Economists expected a 0.8% first-quarter increase.
The report comes a day after the Reserve Bank of Australia kept interest rates unchanged at 2.75. In a statement out Tuesday, the central bank added that it still has room to cut interest rates further and that the Aussie remains high despite its recent downside trend.
Separately, official data showed that Australia's current account deficit narrowed more-than-expected in the first quarter, improving to AUD8.5 billion from a deficit of AUD14.8 billion in the previous quarter.
Analysts had expected the current account deficit to narrow to AUD9 billion in the last quarter. Two disappointing data points in a row could spur hopes that RBA will get back to its rate-cutting ways sooner than later.
Also pressuring the Aussie were comments on Tuesday from one member of the Federal Reserve regarding the possible end of quantitative easing.
In a speech given Tuesday, Federal Reserve Bank of Kansas City President Esther George said she supports easing asset purchases due to the improving U.S. economy. George, in her first year as a Fed member, has been the most vocal critic of quantitative easing.
Elsewhere, AUD/JPY fell 0.20% to 96.37 while AUD/NZD fell 0.40% to 1.1988.
In Asian trading Wednesday. AUD/USD fell 0.36% to 0.9615. The pair was likely to find support at 0.9598, Monday's low and resistance at 0.9792, Monday's high.
Australia’s economy, the world’s 12th-largest grew 0.6% in the first quarter from the fourth quarter and 2.5% on a year-over-year basis, according to a report from the Australian Bureau of Statistics. Economists expected a 0.8% first-quarter increase.
The report comes a day after the Reserve Bank of Australia kept interest rates unchanged at 2.75. In a statement out Tuesday, the central bank added that it still has room to cut interest rates further and that the Aussie remains high despite its recent downside trend.
Separately, official data showed that Australia's current account deficit narrowed more-than-expected in the first quarter, improving to AUD8.5 billion from a deficit of AUD14.8 billion in the previous quarter.
Analysts had expected the current account deficit to narrow to AUD9 billion in the last quarter. Two disappointing data points in a row could spur hopes that RBA will get back to its rate-cutting ways sooner than later.
Also pressuring the Aussie were comments on Tuesday from one member of the Federal Reserve regarding the possible end of quantitative easing.
In a speech given Tuesday, Federal Reserve Bank of Kansas City President Esther George said she supports easing asset purchases due to the improving U.S. economy. George, in her first year as a Fed member, has been the most vocal critic of quantitative easing.
Elsewhere, AUD/JPY fell 0.20% to 96.37 while AUD/NZD fell 0.40% to 1.1988.