FxWirePro: AUD/USD hits 9-week lows on poor Q4 GDP data, dovish comments from RBA’s Lowe

AUD/USD chart - Trading View 

• AUD/USD slumped to 9-week lows at 0.7028, and is currently trading at 0.7038.
   
• Aussie dampened by poor Q4 GDP data and dovish comments from RBA’s Lowe.
   
• Australia's economy expanded 0.2% q/q in Q4, missing the forecast of 0.3% growth. The annualized growth rate cooled to 2.3% from the previous quarter's print of 2.8%. 
   
• Further, Australia’s NAB Online Retail Sales Index contracted -0.5% in January on a month-on-month, on a seasonally adjusted basis, according to analysts at NAB.
   
• The dismal data validates RBA's recent decision to stay pat and could force the central bank to adopt a dovish language. 
   
• RBA Governor Philip Lowe said it is difficult to see rates will rise in 2019, further fueling downside.
   
• Markets now await Thursday’s Australian trade balance and retail sales data for further impetus.
   
• Technical studies are bearish. Scope for further weakness as pair breaks below daily cloud.

Support levels - 0.6907 (Sept 2015 low), 0.6827 (Jan 2016 low), 0.6744 (Jan 2019 low)

Resistance levels - 0.7069 (cloud base), 0.7160 (20-DMA), 0.7307 (50-DMA)

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.