AUD/USD (current price: 0.7485)
The Australian quarterly GDP print was much lower than expected, as output declined by -0.5%. Analysts expected a reading of 0.2%. The AIG Construction Index improved somewhat in November but it still signals contraction with the reading of 46.6. The Aussie was helped by the broad weakness in the U.S. Dollar in late trading, as well as the rally in global stocks, and the bullish price move in precious metals. The pair continues to hover around the 0.7450 level.
Our assessment: AUD/USD is still trading in a declining short-term channel between the 0.7350 and the 0.75 levels. The long-term picture is neutral, with the 200-day Moving Average at 0.7530.
