FxWirePro: AUD/USD edges lower from fresh 4-month high, Australia GDP contacts 0.3 percent Q/Q

AUD/USD chart - Trading View 

AUD/USD has slipped slightly lower from session highs at 0.6982 and was trading at 0.6932 at around 04:20 GMT.

RBA maintains Official Cash Rate at 0.25% and gave an optimistic outlook and noted the improving global state of the pandemic.

AUD/USD closed 1.45% higher in the previous session and extended gains in early Asia today amidst improved risk sentiment. 

The major erased gains from fresh 4-month high after Australia’s Q1 GDP data showed the economy contracted 0.3% q/q in Q1.

That said, bulls remain hopeful amid broadly positive trading sentiment and technical analysis also supports upside.

Also, China's services sector returned to growth in April, for the first time since January this year. China's May Caixin/Markit services PMI rises to 55.0 (vs 44.4 in April), highest since late 2010.

Major trend in the pair is bullish. Corrective slide is likely to be limited. Major weakness only on retrace below 200-DMA.