GDP Data In Focus

After a rollercoaster session AUD/USD finished with gains. The pair rose to challenge 0.7770 , pulling back to visit neutral levels before finally closing at 0.7754 as markets assess the latest RBA statement, the pair last down 2 pips at 0.7752. The greenback finished unchanged on the day, data was mixed with headline ISM slightly above estimates but prices paid and employment subcomponents lower than consensus.

• AUD was supported by further gains in the commodity complex, iron ore rose around 4.3% yesterday after a 3.75% gain on Monday.
• From a technical perspective AUD/USD remains above the May low of 0.7675 from May 4. A bearish theme dominates and attention remains on the 0.7675 level, seen as a firm short-term support. A break would strengthen a bearish case and signal scope for a deeper pullback towards 0.7586, the Apr 13 low. For bulls, clearance of 0.7813, May 18 high would be a bullish development and open 0.7891 instead, high May 10.
• Q1 GDP data headlines the local economic docket today. Elsewhere, Deputy Governor Debelle & Assistant Governor Bullock will appear before the Senate Economics Legislation Committee (Estimates) this evening.