AUD/USd dumps on very poor GDP Q3 data, testing 0.7420 support

Currently, AUD/USD is trading at 0.7422, down -0.49% on the day, having posted a daily high at 0.7476 and low at 0.7418.

Australia's Q3 GDP: Huge miss on expectations, first contraction in 5 years

AUD/USD has dumped on the GDP Q3 contraction that is the first since 2011 and the market doesn't like it. This comes just after the RBA left rates on hold, but with some cautionary language and this result has certainly opened concerns - coupled with the prospects of a reflationary US economy and a stronger dollar, the upside to the Aussie could be limited and the next event will, of course, be the FOMC next week.

AUD/USD levels

Analysts at Commerzbank said that they ideally look for a retest of the 0.7312/10 mid June low and the 78.6% Fibonacci retracement at 0.7287/81. "Further down lurks the May low at
0.7146. We view AUD/USD as having topped and eventually expect it to slide back to the 0.6828 January low." Meanwhile, the current price is 0.7423, with resistance ahead at 0.7423 (Daily Classic S1), 0.7430 (Hourly 100 SMA), 0.7431 (Yesterday's Low), 0.7440 (Weekly Classic PP) and 0.7442 (Hourly 200 SMA). Next support to the downside can be found at 0.7418 (Daily Low), 0.7383 (Weekly Low), 0.7380 (Weekly Classic S1), 0.7375 (Daily Classic S2) and 0.7337 (Monthly Low).