Created
: 2025.06.04
2025.06.04 10:54
The Australian Dollar (AUD) appreciates against the US Dollar (USD) on Wednesday after registering over 0.5% losses in the previous session. The AUD/USD pair remains in positive territory following the release of mixed economic data from Australia.
Australian Bureau of Statistics (ABS) showed that Gross Domestic Product (GDP) grew by 0.2% quarter-over-quarter in the Q1, declining from the previous 0.6% growth. Australia's economy fell short of the expected 0.4% rise. Meanwhile, the annual GDP growth rate remained consistent at 1.3%, against the expected 1.5%.
Moreover, the S&P Global Australia Composite Purchasing Managers' Index (PMI) fell to 50.5 in May from April's 51.0 reading, expanding for the eighth successive month. However, the pace indicates marginal growth in business activity, albeit the slowest so far in 2025.
The S&P Global Australia Services PMI came at 50.6 in May, marking a 16th straight month of expansion but at the slowest pace in six months. The Ai Group Manufacturing PMI posted a -23.5 reading, improved slightly from the previous -26.5. Manufacturers experience delays in major projects and rising market hesitation due to global and domestic uncertainty.
Reserve Bank of Australia (RBA) Assistant Governor Sarah Hunter expressed caution on Tuesday that "higher US tariffs will put a drag on the global economy." Hunter noted that higher uncertainty could dampen investment, output, and employment in Australia. However, she also added that Australia's exporters are relatively well-placed to weather the storm and assumes that Chinese authorities will support their economy through fiscal stimulus.
AUD/USD is trading around 0.6470 on Wednesday, indicating a prevailing bullish bias. The daily chart's technical analysis suggests that the pair remains within the ascending channel pattern. The short-term price momentum remains stronger as the pair stays above the nine-day Exponential Moving Average (EMA). Additionally, the 14-day Relative Strength Index (RSI) is positioned above the 50 mark, indicating a persistent bullish outlook.
On the upside, the AUD/USD pair could approach 0.6537, a seven-month high recorded on May 26. A break above this initial barrier could support the pair to explore the region around the upper boundary of the ascending channel around 0.6670.
The immediate support appears at the nine-day EMA of 0.6456, aligned with the ascending channel's lower boundary around 0.6450. A successful breach below this crucial support zone could dampen the bullish bias and lead the AUD/USD pair to test the 50-day EMA at 0.6395.
The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies today. Australian Dollar was the strongest against the US Dollar.
USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
---|---|---|---|---|---|---|---|---|
USD | -0.16% | -0.15% | -0.11% | -0.09% | -0.14% | -0.13% | -0.14% | |
EUR | 0.16% | -0.01% | 0.03% | 0.07% | 0.02% | 0.02% | 0.00% | |
GBP | 0.15% | 0.01% | 0.00% | 0.07% | 0.04% | 0.04% | 0.02% | |
JPY | 0.11% | -0.03% | 0.00% | 0.06% | -0.06% | 0.05% | 0.02% | |
CAD | 0.09% | -0.07% | -0.07% | -0.06% | -0.05% | -0.05% | -0.06% | |
AUD | 0.14% | -0.02% | -0.04% | 0.06% | 0.05% | -0.00% | -0.02% | |
NZD | 0.13% | -0.02% | -0.04% | -0.05% | 0.05% | 0.00% | -0.01% | |
CHF | 0.14% | -0.01% | -0.02% | -0.02% | 0.06% | 0.02% | 0.01% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Australian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent AUD (base)/USD (quote).
The Gross Domestic Product (GDP), released by the Australian Bureau of Statistics on a quarterly basis, is a measure of the total value of all goods and services produced in Australia during a given period. The GDP is considered as the main measure of Australian economic activity. The QoQ reading compares economic activity in the reference quarter to the previous quarter. Generally, a rise in this indicator is bullish for the Australian Dollar (AUD), while a low reading is seen as bearish.
Read more.Last release: Wed Jun 04, 2025 01:30
Frequency: Quarterly
Actual: 0.2%
Consensus: 0.4%
Previous: 0.6%
Source: Australian Bureau of Statistics
The Australian Bureau of Statistics (ABS) releases the Gross Domestic Product (GDP) on a quarterly basis. It is published about 65 days after the quarter ends. The indicator is closely watched, as it paints an important picture for the economy. A strong labor market, rising wages and rising private capital expenditure data are critical for the country's improved economic performance, which in turn impacts the Reserve Bank of Australia's (RBA) monetary policy decision and the Australian dollar. Actual figures beating estimates is considered AUD bullish, as it could prompt the RBA to tighten its monetary policy.
Created
: 2025.06.04
Last updated
: 2025.06.04
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