Forex - AUD/USD jumps after Aussie GDP report

A A A - The Australian dollar rallied against its U.S. counterpart in Wednesday's Asian session on the back of a solid fourth-quarter GDP report from down under.

In Asian trading Wednesday, AUD/USD climbed 0.28% to 1.0287. The pair was likely to find support at 1.0188, the session low and resistance at 1.0290, the high of February 28. AUD/USD fell to a seven-month low in U.S. trading Tuesday.

Earlier today, Australia's Bureau of Statistics said the country's fourth-quarter GDP rose by 0.6%, matching analysts' expectations. The third-quarter GDP reading was also revised higher to show growth of 0.7%.

Exports, helped by a rebound in China's economy, and infrastructure spending buoyed Australian growth in the fourth quarter. Exports rose 3.3% in the fourth quarter while household spending increased 0.2%. Australia, the world's 12-th largest economy, has been free of recession for over two decades.

That is perhaps one reason why the Reserve Bank of Australia opted to keep interest rates at 3% at its meeting Tuesday. While Governor Glenn Stevens noted RBA has the tools at its disposal to support the economy if necessary, the GDP report may indicate Australia's economy needs no support at the moment.

RBA has pared rates by 175 basis points since late 2011, but traders now see only a small chance of a rate RBA's next meeting in April. Unemployment in Australia is just 5.4%, an impressive number compared to some other developed markets such as the U.S. and the country's most recent consumer confidence was the best since the third quarter of 2011.

Elsewhere, EUR/AUD fell 0.26% to 1.2692 while GBP/AUD dropped 0.24% to 1.4713. AUD/JPY advanced 0.18% to 95.86. AUD/NZD rose 0.14% to 1.2361. - offers an extensive set of professional tools for the Forex, Commodities, Futures and the Stock Market including real-time data streaming, a comprehensive economic calendar, as well as financial news and technical & fundamental analysis by in-house experts.
Read more News on or Follow us on Twitter at @ Newsinvesting

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ, Inc.

This article appears in: Investing , Forex and Currencies

Referenced Stocks:

More from

Related Videos



Most Active by Volume

  • $15.38 ▼ 1.09%
  • $110.38 ▲ 0.73%
  • $104.01 ▲ 1.75%
  • $6.3801 ▼ 53.60%
  • $4.25 ▲ 4.94%
  • $15.91 ▲ 7.72%
  • $4.64 ▲ 11.27%
  • $25.47 ▲ 1.11%
As of 10/2/2015, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by