Jun 05, 2024

On Wednesday, the AUDUSD exchange rate has GDP growth data ahead for the Aussie economy. 

AUDUSD-Daily-ChartAUDUSD – Daily Chart 

The AUDUSD exchange rate found resistance at $0.6693 and has closed at $0.6650 daily. A correction could form at this level, with the $0.6600 level as a first target. 

Wednesday brings the latest GDP growth data for the Aussie economy at 9:30 am HKT. Analysts expect the economy to slow from 1.9% to 1.2% annually. 

Analysts are currently worried about the Australian economy moving into a recession. Across the March quarter, gross operating profits at retailers slumped 2.5%, the Australian Bureau of Statistics said on Wednesday. Earnings across the construction, transport, and retail trade sectors are also reversing. Weaker commodity prices also dented mining profits, down 6.1% over the quarter. Profits in accommodation, food services, and hospitality rose by only 1%. 

These figures will appear in the March quarter’s national accounts data and be released on Wednesday. They could show that the economy underperformed analysts’ expectations.

Following the data on Tuesday, KPMG chief economist Brendan Rynne said the March quarter GDP figures would show the economy was a “heartbeat away from a recession”. 

“When combined with the December quarter of 2023 it shows that the domestic economy has barely grown over the past six months,” he said. 

“However, with inflation still sticky and showing this ‘last mile’ down to the target band is a much harder road, KPMG expects the RBA to still sit on its hands for at least another quarter,” he added. A weaker GDP figure could lead to a correction in the AUDUSD from the current resistance level. 

US ISM Services data will be released at 10 pm HKT and could be necessary after the slowing in ISM manufacturing this week.

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