Australian dollar is trading slightly higher against the American dollar on Wednesday Morning Asian session. Better-than-forecast Australia Q3 GDP details favored the Australian dollar. It has to be noted that the quote has bounced from the yearly low 0.7061 just few hours before.
Australia’s third-quarter (Q3) GDP had a rise of 3.9% YoY against the 3.0% YoY expectations whereas the QoQ figures decreased from the -2.7% market consensus to -1.9%. Earlier in the day, Australia’s Commonwealth Bank Manufacturing PMI jumped past 58.2 figure to 59.2 for November.
Further favorable for the Aussie was the comment of the Goldman sachs. Goldman Sachs’ Andrew Boak said, “Australia is well positioned for recovery into the year-end and 2022.”
Elsewhere, Early Wednesday morning in Asia, China’s Vice Premier Liu He said that the dragon nation’s 2021 GDP growth will exceed the goal. This upbeat comment also acted as favorable catalyst for the Aussie.
On the other hand, Growing market worries from the spread of the new coronavirus variant created risk sentiment in the market. The mood deteriorated further after the chief executive of drugmaker Moderna warned that existing vaccines will be much less effective at tackling Omicron than earlier strains of Covid-19. This risk sentiment headwinds the quote.
Further Dovish stance of the RBA Bank also headwinds the quote. The central bank stressed that inflation was still too low, although it also omitted its previous projection that rates were unlikely to rise until 2024 and dropped a key target for the April 2024 government bond.
“The RBA have made every effort to sound dovish” in the policy statement, “so in that sense there’s clearly an attempt to push back on market pricing,” said Ray Attrill, head of FX strategy at National Australia Bank in Sydney.
AUD/USD 4 Hour Chart:
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