- AUD/USD lost momentum after closing in on 0.74.
- Australian economy grew at a stronger than forecast rate in Q3.
- US Dollar Index bounces back towards 91.50 prior to data.
AUD/USD added to Tuesday’s gains hitting a session high of 0.7393 in the Asian session. The cautious market mood lifted the USD sending the pair south.
AUD fails to gain despite upbeat GDP data
The Australian GDP in Q3 expanded by 3.3% QoQ after a 7.7% contraction in Q2 beating forecasts of 2.6%. Even so, the positive impact on the AUD was short-lived.
The Wall Street’s record-setting rally on Tuesday dragged on the greenback. The US Dollar Index (DXY) dropped to a 2.5 year low at 91.10 before staging a technical correction in the European session.
Looking ahead US ADP Employment Change and the ISM NY Business Conditions Index data is in focus.
The S&P 500 Futures are mildly lower, indicating that AUD/USD could struggle to gain traction in the US session.