AUD/USD keeps the red near 2-week lows, just above 0.6900 handle on upbeat US GDP print
- The US economy expanded by 2.1% annualized pace during the second quarter.
- The USD remains well supported on the back of stronger US Q2 GDP report.
- Rising US bond yields further underpin the buck and might continue exerting pressure.
The AUD/USD pair remained heavily offered and refreshed two-week lows, around the 0.6920 region on upbeat US GDP report.
The already stronger US Dollar got an additional boost after the advance US GDP report showed that the economic growth stood at 2.1% annualized pace during the second quarter of 2019. The data pointed to a deceleration from 3.2% growth recorded in the previous quarter but was still better than consensus estimates pointing to a reading of 1.8% and provided a modest lift to the greenback.
The incoming stronger US economic data further reinforced expectations that the Fed is unlikely to deliver a 50 bps rate cut at its upcoming meeting on July 30-31 and was evident from a modest uptick in the US Treasury bond yields, which underpinned the buck and might continue exerting downward pressure on the major.
Meanwhile, the China-proxy Australian Dollar seemed rather unaffected by renewed optimism over a possible resolution of the prolonged US-China trade disputes. Hence, a follow-through weakness, back towards challenging multi-month lows set on June 18, now looks a distinct possibility.
Technical levels to watch