- AUD / USD advances in the session, despite the rise in US Treasury yields.
- The US dollar is weakening, weighed down by a slower rise in third-quarter GDP.
- Initial jobless claims in the US rose to 281,000, down from the 290,000 expected, improving for the third week in a row.
The AUD/USD up during the American session, it was up 0.50%, trading at 0.7554 at the time of writing. Since Tuesday, the pair remained trapped in the 0.7490-0.7535 zone, unable to gain traction in any way. However, worse-than-expected US GDP figures for the third quarter triggered a sell-off of the dollar.
In the Asian session, the AUD / USD traded near the daily lows, around 0.7480, mainly due to risk appetite. Investors were somewhat unaware that Australian inflation figures spiked higher on Wednesday, raising market participants’ bets of a possible rate hike by the Reserve Bank of Australia.
However, slower-than-expected US economic growth boosted the AUD / USD pair, along with upbeat market sentiment represented by rising US stocks, propelled AUD / USD to hit a daily high at 0.7555.
Meanwhile, the US dollar index, which measures the dollar’s performance, collapses 0.6% to 93.30, despite rising 10-year US Treasury yields rising as much as three basis points to 1.561. %.
US Gross Domestic Product for the third quarter expanded 2%, worse than the 2.7% forecast, the US dollar weakens
At the macroeconomic level, the United States Gross Domestic Product for the third quarter increased 2%, below the 2.7% estimated by analysts. Additionally, the Federal Reserve’s favorite inflation measure, Personal Consumption Spending, remained high, expanding 4.5% in the third quarter, after a 6.1% rebound in the previous three months.
However, there was something positive on the day. Initial US Unemployment Claims rose to 281,000, below the 290,000 expected by analysts, falling for the third consecutive week. Despite recent disappointments from the US Non-Farm Payrolls report, the job market is showing some signs of coming back to life.
Meanwhile, pending home sales in the US decreased 2.3% in September on a monthly basis, following the August reading that witnessed an increase of 8.31%, as reported by the National Association of Agents. US Realtors
AUD / USD Price Forecast: Technical Outlook
The daily chart shows that AUD / USD has registered a break to the upside above 0.7550, but is facing stiff resistance, at the 200-day moving average (DMA), which is at 0.7560. The Relative Strength Index (RSI), a momentum indicator found at 71 internal overbought levels, coupled with the 200 DMA, could potentially put downward pressure on the pair, so it’s worth noting for. AUD / USD traders.
However, a daily close above the latter could open the way for 0.7600, which converges with a six-month downtrend line to the downside, which would oppose strong resistance.
Therefore, a breakout to the upside is expected, but caution is warranted as signs of possible price depletion are on the horizon.
Technical levels
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