Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Australian Dollar Dips As GDP Slows

By MarketPulse (Kenny Fisher)ForexJun 02, 2021 06:32AM ET
Australian Dollar Dips As GDP Slows
By MarketPulse (Kenny Fisher)   |  Jun 02, 2021 06:32AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

The Australian dollar has reversed directions and is in negative territory on Wednesday. In the European session, AUD/USD is trading at 0.7724, down 0.36% on the day.

Australian GDP rises 1.8% in Q4

Australia’s economy rose 1.8% (QoQ) in the first quarter of the year, down from 3.2% in Q4. This was above the consensus of 1.5%. The level of economic activity currently is 0.8% above the fourth quarter 2019 pre-pandemic level, as the recovery continues to deepen. On an annual basis, GDP climbed 1.1%, reboounding from the -1.0% read in Q4.

The solid growth in Q1 reflects the continuing easing of health restrictions and the recovery in the employment market. Still, the positive numbers failed to impress investors, as the Australian dollar is down considerably in Thursday trade.

The market will get another snapshot of the strength of the economy on Thursday, with the release of Retail Sales (1:30 GMT). In March, Retail Sales climbed 1.1%, and identical gain is projected for April. As well, the country’s trade balance is expected to widen to AUD7.90 billion, up from AUD5.57 billion.

No surprises from RBA

The RBA did not make any waves at its monthly policy meeting on Wednesday, as the bank maintained its policy settings. There is some unfinished business on the plate of RBA policymakers, as the bank will decide in July whether to implement further QE. The RBA statement did not provide any clues as to what the RBA is planning to do come July. The statement noted that “despite the strong recovery in the economy and jobs, inflation and wage pressures are subdued” and added a typical message that the bank is “committed to maintaining highly supportive monetary conditions”. Any hints from the RBA about QE could have have a significant effect on the movement of the Australian dollar.

AUD/USD Technical

AUD/USD Daily Chart
AUD/USD Daily Chart

  • On the upside, 0.7727 is under pressure. Above, there is resistance at 0.7777
  • On the downside, there are support levels at 0.7658 and 0.7608

Original Post

Australian Dollar Dips As GDP Slows

Related Articles

Al Brooks
EUR/USD: Is A Move Higher Likely? By Al Brooks - Jul 30, 2021 2

EUR/USD has 5 consecutive bull bars after consecutive wedge bottoms, which is a high probability buy setup. Testing the July 6 and July 9 double top so might pull back for a...

Ashraf Laidi
Dollar Dips, PCE Next By Ashraf Laidi - Jul 30, 2021

by Adam Button We said on Monday here this would be a pivotal week and it certainly proved to be so. The US dollar steadily sold off on Thursday and was the worst performer; we...

Australian Dollar Dips As GDP Slows

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email