AUD/USD declines to 0.6950, still up 0.90% on a day, after Australia’s Q1 GDP matched -0.3% forecasts on early Wednesday. In doing so, the Aussie pair steps back from the five-month high.
Australia’s first quarter (Q1) GDP contracts 0.3% versus +0.5% growth the previous quarter on a QoQ basis. The YoY figures also matched 1.4% market consensus versus 2.2% prior.
On the data/event front, Second-tier PMI data from Australia’s AiG and Commonwealth Bank flashed upbeat prints. Further, RBA’s Assistant Governor Michele Bullock spoke nothing relating to the monetary policy during her latest appearance.
Given the recently stellar performance of the AUD/USD pair, traders will keep checking for any negative hints to book the profits. In doing so, the heavy economic line from the US, up for publishing today, will be the key.
In this regard, TD Securities said, “Regional manufacturing surveys, as well as the Markit PMI data, have been showing some fading of weakness in May. The surveys’ details have been showing more fading of weakness than the headline data due to a reversal of earlier strength in the deliveries components. Index levels have remained in contraction territory, however. We forecast a modest increase for ISM non-manufacturing to 44.0 from 41.8 in April. Separately, the May ADP employment report is likely to continue showing dramatic weakness in the labor market but to a lesser extent than in April. We forecast an above-consensus 3 million decline.”
AUD/USD SHORT (Sell)
ENTER AT: 0.69380