AUD/USD unable to get over the 0.75 line on US GDP

Currently, AUD/USD is trading at 0.7472, down -0.07% on the day, having posted a daily high at 0.7500 and low at 0.7433.

AUD/USD has felt some pain in the advance towards the 0.75 handle and struggles to get through the psychological level with the revised US GDP print that offered a stronger-than-expected annualized growth of 3.2% during third quarter of 2016. The reading was higher-than 3.0% annualized growth expected and 2.9% reported previously. This comes on a week that has the nonfarm payrolls before the end of year FOMC meeting in the middle of December and this number leaves a rate hike on the table and priced into the dollar.

In respect of Australia's economy, the OECD released their Global Economic Outlook overnight with a positive outlook for the Australian economy, projecting growth to pick up to 3% by 2018, as resource investment tails off while consumption, investment and the jobs market improve.

Analysts at TD Securities explained, "In fact the OECD states “...no further easing is projected, and rate increases are projected to begin towards the end of 2017 as spare capacity fades.” A key factor behind no further rate cuts are housing market developments, where the OECD states “...Despite the employment of macro-prudential measures to cool the housing market, the net gain from monetary easing has narrowed. Significant housing market concerns remain and there is growing discord between financial market developments and rest of the economy due to the low-interest-rate environment”.  Should growth disappoint, the OECD sees fiscal policy, not monetary policy doing the heavy lifting given housing market concerns. While S&P may have sounded the alarm on Australia’s AAA rating, the OECD does see “space for fiscal loosening given the low public-debt burden” and suggests “accelerated” infrastructure spending could pay dividends across the economy”."

AUD/USD levels

Current price is 0.7472, with resistance ahead at 0.7478 (Weekly High), 0.7478 (Daily Open), 0.7496 (Yesterday's High), 0.7500 (Daily High) and 0.7501 (Daily 20 SMA). Next support to the downside can be found at 0.7469 (Daily Classic PP), 0.7466 (Hourly 20 EMA), 0.7442 (Daily Classic S1), 0.7434 (Hourly 100 SMA) and 0.7433 (Daily Low).