Forex - AUD/USD lower on downbeat Australian GDP

Published 06/05/2013, 02:50 AM
Updated 06/05/2013, 02:54 AM
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Investing.com - The Australian dollar was lower against its U.S. counterpart on Wednesday, as downbeat Australian economic growth data sparked expectations for a rate cut by the Reserve Bank of Australia.

AUD/USD hit 0.9592 during late Asian trade, the pair's lowest since May 31; the pair subsequently consolidated at 0.9583, declining 0.66%.

The pair was likely to find support at 0.9528, the low of May 29 and a one-and-a-half year low and resistance at 0.9681, the high of May 31.

Official data showed that Australia's gross domestic product rose 0.6% in the first quarter, after expanding at the same pace in the previous quarter. Analysts had expected the GDP to rise 0.8% in the last quarter.

The report also showed that Australia's GDP rose 2.5% in the first quarter from a year earlier, expanding at the slowest annual pace in nearly two years.

The data came a day after the Reserve Bank of Australia held its benchmark interest rate at a record low of 2.75%, but said it still has room to cut interest rates further.

Meanwhile, markets were focusing on the U.S. private sector jobs report by payroll processor ADP later Wednesday for clues on Friday’s key nonfarm payrolls data.

The Aussie was also lower against the euro with EUR/AUD climbing 0.78%, to hit 1.3665.


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