Aud/usd Slides To 3-Month Low After Australian Gdp - Fxnet Daily Market Analysis

[Guest FxNet]

The Australian dollar was the worst performer in the Asian session after dropping 1% against the US dollar on disappointing GDP data.

AUDUSD fell to a three-month low to $0.9045 after the data that showed the Australian economy grew less-than-expected in the third quarter at 0.6% versus 0.8% forecast.

The Aussie has been falling steadily since the October 23 high of $0.9756, triggered by comments from Reserve Bank of Australia Governor Glenn Stevens who said the value of the currency is too high.

Meanwhile, the soft GDP data suggests further monetary easing was not completely ruled out, meaning a possibility of a rate cut from the current 2.5% benchmark rate.

The US dollar managed to make a small recovery against the yen after a big slide yesterday. USD/JPY dropped to 101.97 yesterday as investors took the opportunity to rake in their recent profits when the dollar hit 103 yen, while being cautious ahead of key risk events.

There will be a string of US data coming out – ADP jobs data later today, US GDP tomorrow and the all-important US non-farm payrolls data on Friday.

The dollar ended the Asian session at 102.66 yen, with a gain of 0.17%.

The euro moved away from a one-month high against the dollar as focus turns to the European Central Bank policy meeting tomorrow. EURUSD slid to end the Asian session at $1.3579. However against the yen, the euro gained slightly to 139.41 yen.

[robert11]

The price is moving up within a bullish channel on the daily chart. We will be looking for short/sell opportunities across the market if the bottom of the channel is broken down.

http://forex-fa14.blogspot.com/