AUD/USD jumps to test 0.7300 on stronger Aus GDP

The bid tone around the AUD got a big boost following the release of much better than expected Australian GDP report, which sent AUD/USD closer towards 0.73 handle.

AUD/USD regains 200-DMA at 0.7265 and beyond

Currently, the AUD/USD pair jumps +0.72% to 0.7286, quickly retreating from fresh ten-day highs printed at 0.7292 on the GDP release. The Aussie extended its recovery from near 0.7220 region and found renewed  bids after the upward revision to first quarter Aus GDP figures, as widely anticipated by the markets, especially after stronger net exports data seen yesterday.

Australia’s Q1 GDP q/q came in at +1.1% versus +0.8% expected and from +0.7% prior (revised higher from +0.6%). While on an annualized basis, the GDP rose +3.1% versus +2.8% expected and from +2.9% prior (revised higher from +3.0%.

The latest GDP figures added to the recent streak of upbeat fundamentals, including Aus trade, jobs and building approvals data, which poured cold water on increasing calls for further RBA rate cuts in the upcoming months.

Moreover, a strong rebound staged by gold prices and upside consolidation seen in oil, also lends support to the bullish momentum in the Aussie. Next in immediate focus for the Aussie remains the Caixin China manufacturing PMI report due to be released shortly for further cues on the AUD/USD pair. While the US jobs data is closely eyed by markets.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7300 (round number) above which gains could be extended to the next hurdle located at 0.7350 (psychological levels). On the flip side, the immediate support located at 0.7265/51 (200 & 20-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie 0.7214/12 (5 & 10-DMA).