The Australian Gross Domestic Product will be released tonight at 9:30pm EST. It a quarterly event which shows the change in percentage of the value of goods and services produced by the economy.
The forecast is .8% compared to the previous quarter. It is not uncommon to see deviation in the GDP release and that can increase the volatility effect of the event so, pay close attention.
With Junes release we saw a 1.3% increase for the GDP. There is a 0.8% forecast for this evening and with strong negative deviation we could see a drastic bearish continuation with the AUD against the U.S. Dollar. (See the chart below.)
Recently the RBA kept the bench mark interest rates unchanged at 3.5%, it’s the highest rate in the developed world.
Some think the RBA should have cut rates with the rest of the economy looking as is and the mining markets losing momentum. I expect the rates to be lowered by the end of the year if the state of the Australian economy continues to decline.
I think if we hear bearish news tonight, new lows can be seen for the AUD/USD, maybe breaking the 1.01 area of support.
Australia has three more high impact news events being released this week. Click here to visit Forex Factory and see the calender I use.
Here’s my AUDUSD chart below:
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