FxWirePro: AUD/USD grinds higher despite Australia Q3 GDP miss

• AUD/USD  firmed on Wednesday  as weaker greenback offset disappointing   Australian GDP data.

• Australia's GDP rose by 0.4% from the prior quarter, missing forecasts for a gain of 0.7% and slowing from an upwardly revised 0.7% in the previous quarter.

• Growth slowed mainly due to a sharp inventory drag, subtracting 0.5 ppt from GDP, while strong domestic demand added 1.1 ppt.

• Focus now shifts to next week’s policy meeting, where interest rates are widely expected to stay at 3.6% after three cuts this year.

• Swaps imply the Reserve Bank of Australia will remain on hold until late next year, but are pricing in a 75% probability for a rate hike by the end of 2026.

• Immediate resistance is located at 0.6586(Higher BB), any close above will push the pair towards 0.6606(38.2%fib).

• Support is seen at 0.6541 (50%fib) and break below could take the pair towards 0.6514(SMA 20).

 Recommendation: Good to buy  around 0.6530, with stop loss of 0.6450 and target price of 0.6610