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Forex - AUD/USD rises to 7-day high after Australian GDP data

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Investing.com - The Australian dollar rose to a seven-day high against its U.S. counterpart on Wednesday, after Australian gross domestic product data came out in line with expectations, while hopes for further easing by world central banks supported sentiment.

AUD/USD hit 1.0301 during late Asian trade, the pair's highest since Fenruary 25; the pair subsequently consolidated at 1.0279, rising 0.20%.

The pair was likely to find support at 1.0249, the low of February 25 and resistance at 1.0329, the high of February 25.

Official data showed that Australia's GDP rose 0.6% in the fourth quarter, in line with expectations. The rate of expansion of the third quarter GDP was revised up to 0.7% from 0.5%.

Meanwhile, overall market sentiment was buoyed by prospects for ongoing monetary easing by the Federal Reserve and the Bank of Japan, as well as signs that the economic recovery in the U.S. is gaining momentum.

Investors remained cautious however, ahead of meetings by the European Central Bank and the Bank of England on Thursday and U.S. data on nonfarm payrolls on Friday.

The Aussie was higher against the euro with EUR/AUD shedding 0.21%, to hit 1.2697.

Later in the day, the U.S. was to publish a report on ADP nonfarm payrolls and official data on factory orders.

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


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

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