- Aussie was dumped early in the Asian session after Australia Q3 GDP data missed expectations.
- Australia s/adj Q3 GDP printed at +0.6 pct q/q, missing forecasts at +0.7 pct. Y/Y GDP rose +2.8 pct, below expectations at +3.0 pct.
- AUD/USD has failed extend gains above 200-DMA, slips lower to trade at around 85 levels.
- Price action has broken below 5-DMA at 85.30, finds next immediate support at 61.8% Fib at 84.85.
- The pair has been on a downward spiral since Sept 2017 and we see resumption of downside on break below 84.50 (major trendline).
- On the flipside, we see further gains only on decisive close above 200-DMA. Scope then for test of 38.2% Fib at 86.93.
Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-JPY-retraces-above-85-handle-scope-for-further-upside-200-DMA-at-8590-in-sight-1034016) has hit all targets.
Recommendation: Wait for clear directional bias.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -122.59 (Bearish), while Hourly JPY Spot Index was at 126.507 (Bullish) at 0500 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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