Global macro overview for 06/09/2017:
The Australian GDP failed to beat the estimates as official growth data came in broadly as expected. Market participants expected the second quarter GDP, which is a significant report serving as one of the primary indicators of a country's overall economic health, to increase from 0.3% to 0.8% q/q and indeed, Gross Domestic Product rose by 0.8% in the quarter, and 1.8% on the year. Nevertheless, global investors might feel a little disappointed, because the recent construction and services data for the same period were very strong. This is why there were some reasons to anticipate even better than expected figures.
The Reserve Bank of Australia left the interest rates on hold earlier this week amid the positive economic indicators. The rhetoric against AUD was not tightened - it was reiterated that the strong AUD was ahead of growth prospects and employment and could be declining price pressures. Any interest rate hike has been set aside at least until the second quarter of 2018 as event any loosening the monetary policy would jeopardize the stability of the housing market.
Let's now take a look at the AUD/USD technical picture on the H4 time frame. The GDP figures come at a crucial juncture for the year's Australian Dollar trade. The AU is D still trading close to the yearly highs, mostly due to the weak US Dollar, but so far bulls did not manage to break out above the swing high at the level of 0.8064. The momentum is still above the fifty level, but there are the clear signs of a growing bearish divergence that might push the price back to the level of 0.7865.
