AUD/USD clocks one-month high as annualised Aussie GDP beats estimates

The Australian dollar is climbing on the back of a better-than-expected Australia first quarter annualised GDP figure. The AUD/USD rose to 0.7533; the highest level since May 3. 

Australia’s Q1 GDP rose 1.7% y/y

The annualised GDP beat estimates of 1.6%, although the actual print still shows a marked slowdown from the previous quarter’s 2.4% reading. The GDP rose 0.3% quarter-on-quarter as expected. 

Growth is at the lowest in 8 years, but much of the bad news was already priced-in. Moreover, the USD side of the story looks weak, given the drop in the 10-year yield to a 7-month low. Furthermore, strength in gold is also keeping the Aussie well bid. 

AUD/USD Technicals

The spot was last seen chipping away at the immediate hurdle at 0.7530 (200-DMA). A break higher would expose resistance at 0.7556 (100-DMA + May 2 high) and 0.7586 (Apr 24 high). On the downside, breach of support at 0.7485 (50-DMA) would shift risk in favor of a pull back to 0.7462 (5-DMA) and 0.7416 (May 30 low).