• AUD/USD edged higher on Thursday as strong Australian GDP data strengthened the odds of an imminent rate hike by RBA
• Australia’s economy grew faster than expected in the second quarter, with GDP rising 2.1% year on year, data released Wednesday showed.
•On a quarter-on-quarter basis, GDP increased 0.4%, slightly above market expectations of 0.3%. Growth was supported by stronger private demand and higher mining exports.
•Australia’s July goods trade surplus came in at A$1.92 billion, above the A$1.45 billion consensus. However, goods exports fell 3.3% month-on-month, suggesting weaker external demand despite the larger trade surplus.
• Markets are currently pricing a 61.0% probability of a 25-basis-point RBA rate hike in September.
• Immediate resistance is located at 0.7184(38.2%fib), any close above will push the pair towards 0.7219(Higher BB).
• Support is seen at 0.7121(38.2%fib) and break below could take the pair towards 0.7083 (May 21st low ).
Recommendation: Good to buy around 0.7150, with stop loss of 0.7100 and target price of 0.7220
