In comparison to the U.S. dollar, the Australian dollar rallied in the Asian session on Wednesday, backed by a stable GDP report for the fourth quarter. Statements from the Bureau of Statistics in Australia reported early today that the fourth quarter GDP had shown a rise of 0.6%, which fulfilled the expectation put forth by analysts. The GDP values in the third quarter were revised to indicate a growth of 0.7%. Wednesday’s session of the Asian markets clearly showed an increase for the currency pair, AUD/USD as it went up 0.28% to a value of 1.0287. Further analysis revealed that the currency pair was positioned at a support value of 1.0188, session low and resistance observed at 1.0290.
Infrastructure spending as well as exports supported by the recovering economy in China helped in sustaining the fourth quarter growth in Australia. As the twelfth largest economy worldwide, Australia has been secure from recession for a period extending over two decades, with values suggesting increase in domestic expenditure rising 0.2%, and exports increasing 3.3%. With rates held par at 175 basis points, traders are also holding the focus on the next RBA meeting scheduled in April. The country is also earning appreciation, since the unemployment positioning at mere 5.4%, which is quite impressive when referring to other developed economies worldwide. The consumer confidence is also soaring high from the third quarter in 2011. The RBA preferred to maintain the interest rates at 3%, also stated that it is prepared to support the economy if need arises, fortunately, the GDP report suggests that Australian economy to be quite steady.
The Asian trading session on Wednesday also showed signs of the EUR/USD increasing 0.08% to a value of 1.3062 as traders contemplate monetary policy decision scheduled for Thursday by the European Central Bank. On the same day, the Dollar is witnessed to be trading lower in comparison to the Yen. EUR/JPY dropped 0.03% to 121.72, and the traders are concentrating on the announcements on Thursday regarding monetary policies from the European Central Bank and BOJ. As reported on Tuesday, Germany’s services PMI climbed to a value of 54.7 in February, beating market calls for a reading of 54.1, as per Markit Economics.