• AUD/USD edged higher on Wednesday after data showed the Australian economy rebounded by more than expected in the second quarter.
• Australia’s economy grew at its fastest pace in nearly two years in Q2, driven by a rebound in consumer spending after rate cuts.
• Australia’s Q2 GDP rose 0.6%, beating forecasts of 0.5% and up from 0.3% in Q1, the ABS reported.
• . The upside surprise on growth was enough to shift the dial somewhat on expectations for further rate cuts from the Reserve Bank of Australia.
• Markets are still almost fully priced for a quarter-point reduction to 3.35% in November, but the ultimate extent of easing dropped to 44 basis points from 50 basis points..
• Immediate resistance is located at 0.6570(Higher BB), any close above will push the pair towards 0.6624(23.6%fib)
• Support is seen at 0.6505(38.2%fib) and break below could take the pair towards 0.6430(Lower BB).
Recommendation: Good to sell around 0.6530 with stop loss of 0.6600 and target price of 0.6450
