The Aussie dollar pulled back from 0.8000 zone which was repeatedly dented in Asia on Wednesday (session high at 0.8020 vs Tuesday’s peak at 0.8028) after Australian GDP miss.
Gross Domestic Product for the second quarter came at 0.8% (q/q) vs forecasted 0.9% while annualized release was at 1.8% vs 1.9% forecast.
However, Q2 numbers are better than in the first quarter which is seen as positive signal.
The pair eased from 0.8000 zone which proves to be strong barrier, dragged by softer GDP numbers, but overall bullish structure keeps bullish bias in play.
Limited dips are expected before fresh attempts higher, with solid supports at 0.7948/44 (rising 10SMA / Fibo 38.2% of 0.7807/0.8028 upleg) which should ideally contain and guard pivotal support at 0.7920 (20SMA).
Final close above 0.8000 barrier is needed to signal further upside which could extend to 0.8165, as previous probes above at the end of July (which resulted in spikes to 0.8065/42) also failed to close above 0.8000.
Alternative scenario sees increased risk of deeper pullback on loss of 0.7920 support.
Res: 0.8000, 0.8028, 0.8042, 0.8065
Sup: 0.7975, 0.7948, 0.7920, 0.7900
