AUD/USD Trades in a Range Ahead of Australia’s GDP Announcement

The AUD/USD currency pair was trading within a range for the better part of today’s session even as markets await the release of GDP data for the last quarter of 2016 early tomorrow morning. The Aussie failed to capitalize on a weaker US dollar even as markets await Donald Trump‘s speech before congress scheduled for later today.

The AUD/USD was trading in a range between 0.7662 and 0.7695. The currency pair was unable to break above the upper resistance level of 0.7700 despite the weaker greenback.

The Australian dollar was stronger against the US dollar as the country’s Gross Domestic Product is expected to increase by 0.7% after it declined by 0.5% in the third quarter. However, the US dollar was weaker today as the GDP and the advance goods trade balance missed expectations, while US consumer confidence in February beat expectations.

The Aussie was also affected by the stronger gold prices given that the currency is largely regarded as a safe haven as it is largely backed by commodities.

The AUD/USD currency pair is also likely to be significantly affected by the Reserve Bank of Australia meeting scheduled for March 7. Although the RBA Governor, Philip Lowe, has been reluctant to raise interest rates, a higher GDP might lead to a shift in the RBA’s quantitative easing approach.

The AUD/USD was trading at 0.7680 as at 17:49 GMT having opened the day’s session trading at 0.7670. The AUD/JPY was trading at 85.95 having opened the day’s session trading at 86.40, which means that the Aussie was weaker against other currencies.

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