Global macro overview for 07/12/2016:
The Gross Domestic Product data from Australia was released overnight and it disappointed global investors. Australian Q3 GDP fell by 0.5% q/q, well below the median forecast of 0.2% contraction. The main reasons behind the negative reading were household spending, house construction, CapEx, and government spending. This is the first negative reading from Australian economy, which is known for being very robust for recession. With the Australian Government looking over its shoulder at the upcoming S&P credit review and maintaining its coveted Triple-A rating, no much help can be expected on the fiscal front.
Let's now take a look at the EUR/AUD technical picture in the daily time frame. The price is still trading below all of the moving averages, but growing bullish divergence between the price and momentum indicator suggests the bounce from the technical support at the level of 1.4142 might get stronger. The next resistance is seen at the level of 1.4510 and 1.4566.
