FxWirePro: AUD/USD dips as Australian Q2 economic growth moderates

• AUD/USD slipped lower on Wednesday as stronger US dollar offset upbeat Australian Q2 GDP data.

• Australian data showed the economy grew 0.4% in the second quarter to just pip forecasts of 0.3%, largely thanks to a consumer splurge on electric vehicles as petrol prices jumped.

• Annual growth slowed to 2.1%, from 2.5%, but was some way above forecasts of 1.8% and higher than what the Reserve Bank of Australia considers the speed limit for the economy.

• Investors reacted by nudging up the chance of a hike this month to 58%, from 49% before the data, while a move to 4.60% is fully priced for November.

•Looking ahead, markets will focus on appearances by RBA officials Sarah Hunter and Dr James Bishop before a Senate committee on Thursday for further clues on the central bank’s policy outlook.

• Attention will then turn to the key U.S. August non-farm payrolls report due Friday, with the Reuters consensus calling for an increase of 56,000 jobs

• Immediate resistance is located at 0.7197(38.2%fib), any close above will push the pair towards 0.7241(Higher BB).

• Support is seen at 0.7134(50%fib) and break below could take the pair towards 0.7113(SMA 20 ).

 Recommendation: Good to sell around 0.7150, with stop loss of 0.7200 and target price of 0.7100