AUD/USD remains stuck around after below-forecast Aussie Q1 GDP

• AUD remains stuck below 0.70 following the weaker-than-expected Aussie Q1 GDP.
• RBA cut rates to a new record low on Tuesday.
• The central bank may stand pat in July if the Aussie labor market shows resilience.

The AUD/USD pair is seeing little action following the release of a weaker-than-expected Aussie growth rate.

Australia’s Gross Domestic Product (QoQ) for Q1 came in at 0.4%, missing the expected rise to 0.5% from the preceding quarter’s growth rate of 0.2%.

The annualised growth rate slowed to 1.8% as expected from the previous quarter’s growth rate of 2.3%.

A below-forecast Aussie GDP has done little damage to the AUD/USD pair, leaving it largely unaffected around 0.6996, as the possibility of weaker rebound was already baked in.

Notably, the data has arrived a day after the Reserve Bank of Australia cut rates by 25 basis points to a new record low of 1.25% in order to buttress growth and preserve the 2% inflation target.

Further, speculation is gathering steam that the central bank may not deliver back-to-back rate cut in July if the jobless rate remains steady at 5.2%. The focus, therefore, is on the labor market data, scheduled for release next week.

Pivot levels