FxWirePro: Aussie rallies near 2-week peak on upbeat growth data
The Australian dollar surged, extending gains for the third straight session after data showed Australia’s economy expanded by more than expected last quarter. Data released earlier in the day showed the economy expanded…
The Australian dollar surged, extending gains for the third straight session after data showed Australia’s economy expanded by more than expected last quarter.
Data released earlier in the day showed the economy expanded by 0.5 percent last quarter, recording its 29th consecutive year of growth without a recession.
Earlier in the week, the Reserve Bank of Australia cut interest rates to an all-time low of 0.5 percent in a bid to shield the economy from the impact of the coronavirus.
The Aussie was trading 0.3 percent up at 0.6603, having hit a high of 0.6645 on Tuesday, its highest since Feb. 20.
Technical indicators are bullish on hourly charts: RSI strong at 58, Stochs are biased higher and MACD supports upside.
Immediate resistance is located at 0.6638, a break above could take it near 0.6676.
On the downside, support is seen at 0.6568, a break below could drag it till 0.6547 (5-DMA).
Recommendation: Good to buy on dips around 0.6585, with stop loss of 0.6568, and target price of 0.6638.
