The Australian Dollar is correcting. Overview for 04.12.2019

After three trading sessions of stable and significant growth, AUDUSD is moving downwards on Wednesday; the correction is supported by numbers. 

The Aussie started retreating against the USD after several days of growth. The current quote for the instrument is 0.6822. 

The statistics published in the morning showed that the Australian GDP added only 0.4% q/q in the third quarter after expanding by 0.6% q/q the quarter before and against the expected reading of +0.5% q/q. Nevertheless, on YoY the indicator was 1.7%, which is pretty good. 

It is evident that three rate cuts by the Reserve Bank of Australia in 2019 haven’t yet provided the country’s economy with the expected support. At the same time, one should admit that it’s typical for the Australian economy to reverse slowly, both upwards and downwards. It means that in the long run, and the RBA shares this outlook, the GDP will feel this impulse and get more dynamic. 

The Aussie’s drawdown might have been more serious if it hadn’t been for the statistics from China published earlier today. The Caixin Services PMI increased up to 53.5 points in November after being 51.1 points the month before and against the expected reading of 51.2 points. The components of the report show that new orders increased quite well, while employment remained doubtful. 

In general, today’s market sentiment isn’t in favor of risks due to new details relating to the US-China trade talks and that put additional pressure on the Aussie.