• AUD/USD edged lower on Tuesday as data pointed to modest growth and reinforced expectations of further RBA easing.
•Australia’s Q2 current account deficit was A$13.7B, down from A$14.1B in Q1 and below forecasts of A$16.08B.
• Separate data showed that net exports contributed a modest 0.1 percentage point to Australia’s GDP in the second quarter, while government spending had no impact..
• . The full GDP report, due Wednesday, is expected to show a 0.5% rise in Q2, with household consumption rebounding after a prolonged weakness.
• The RBA has cut rates three times this year to 3.6% as inflation eased, but a sluggish economic recovery keeps the door open for further easing in the months ahead.
• Immediate resistance is located at 0.6562(38.2%fib), any close above will push the pair towards 0.6596(Higher BB)
• Support is seen at 0.6503(SMA 20) and break below could take the pair towards 0.6444(50%fib).
Recommendation: Good to sell around 0.6540 with stop loss of 0.6580 and target price of 0.6450
