Aussie Struggles to Keep Gains Fueled by GDP Report

The Australian dollar rallied today with help of favorable economic reports, including the GDP report that showed accelerating economic growth in Australia. The Aussie has trouble keeping gains, retreating close to the opening level versus its US peer and halting the rally against other currencies.
The official data showed that Australia’s gross domestic product grew 1.1 percent in the first quarter of 2014 from the previous three months. The increase was bigger than the predicted 0.9 percent and the previous quarter’s growth of 0.8 percent. The seasonally adjusted Australian Industry Group Australian Performance of Services Index rose from 48.6 in April to 49.9 in May, almost reaching the neutral 50.0 level.
The Aussie rallied yesterday after the central bank did not show willingness to ease monetary policy and weaken the currency. It looked like the Australian dollar would be able to maintain its upward momentum today with help of supportive domestic fundamentals, but for whatever reason the Aussie struggles right now.
AUD/USD was up from 0.9264 to 0.9296 before retreating to 0.9267 as of 5:15 GMT today. EUR/AUD fell from 1.4706 to the daily low of 1.4637 before bouncing to 1.4690. AUD/JPY traded at about 95.08 following the rally from 94.96 to 95.34.

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