Aussie dollar holds up after strong US data

Financial and commodity markets analytics

The Australian Dollar is trading higher today, even after better than expected numbers hit the market from the US increasing the chances of a rate hike from the US Federal Reserve.

At 7.30PM (GMT) the Australian dollar was trading at US71.70c up from US71.22c in yesterdays close

Quarterly GDP from the US came in at 2.1% against analysts’ expectations of a 2% rise while the annualized figure came in at 3.7%, well above expectations of a 3.2% rise.

After initially falling after the news, the Aussie dollar has since rebounded, but some analysts say the move is temporary and it is only a matter of time before the Australian dollar continues its downtrend.

The "AUD/USD was somewhat less sensitive to global fears about China’s economic slowdown as the Aussie is first in line when traders price in the consequences of a weaker growth from the world’s second biggest economy," says Arnaud Masset from Swiss quote Research.

With no local data due out tomorrow, the Aussie dollar will be driven by external forces such as the Famous summit at Jackson hole, Wyoming, as well as more economic data out of the US.


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