Aussie dollar traders are gearing up for a busy session today, with key GDP data scheduled for release early in the day. Reserve Bank of Australia Governor Michele Bullock adopted a strongly hawkish tone during her speech last week. If today’s data supports her stance, we could witness further strength in the Aussie dollar in the sessions ahead. The market expects a 0.5% quarter-on-quarter increase, and any significant deviation from this figure could lead to substantial currency movements.
The Aussie has been under pressure against the greenback over the past month, with the ‘big dollar’ strengthening across the board. It is currently trading just above recent multi-month lows, below 65 cents. A weaker-than-expected GDP figure today could see the currency testing those levels, potentially pushing towards the annual low of 0.6347. Conversely, a stronger result may trigger a relief rally, although traders anticipate such gains to be capped due to the prevailing downward trend. On the hourly chart, short-term resistance is now positioned around 0.6520.
Resistance 2: 0.6687 – November High
Resistance 1: 0.6520 – Trendline Resistance
Support 1: 0.6438 – Short-term Trendline Support
Support 2: 0.6410 – Long-term Trendline Support
