- AUD/USD gains ground near 0.6575 following the Australian GDP data.
- Australia’s Gross Domestic Product (GDP) showed the slowest growth in two years.
- US ADP private employment and Unit Labor Costs will be due later on Wednesday.
The AUD/USD pair climbs to 0.6575 during the early Asian trading hours on Wednesday. The pair edges higher following the Australian growth numbers. However, the rebound of the US Dollar (USD) and risk-off mood might cap the further upside of AUD/USD.
Australia’s economy unexpectedly slowed in the third quarter, as higher interest rates impacted consumers and trade turned negative. Early Wednesday, the Australian Bureau of Statistics (ABS) revealed that
Australia’s Gross Domestic Product (GDP) expanded by 0.2% in the third quarter of 2023, compared with the 0.4% growth in Q2. This reading came in below expectations of 0.4%. On an annual basis, the growth number rose by 2.1% versus 2.1% growth in Q2, above the market consensus of a 1.8% expansion.
However, the risk-off mood and the pessimistic for China’s economic outlooks might cap the China-proxy Australian Dollar (AUD). According to Reuters, the rating agency Moody’s cut its outlook on China’s sovereign credit rating to negative on Tuesday, citing the increasing risks to growth and a property sector crisis in the country.
Investors will take more cues from the US ADP private employment and Unit Labor Cost data on Wednesday. On Thursday, the Australian Trade Balance will be released.
Read the full article here