AUD/USD to gain upside momentum on a sustained move above 0.7340 – TDS

The Australian dollar is the day’s best G10 performer after Australia’s Q2 GDP surprised on the upside. AUD/USD is trading higher to test the 0.7340 threshold, and a sustained break above here would expose the 0.7415 region again, as reported by TD Securities.

Australia reports a growth rate of 0.7% in the second quarter of 2021

“Growth came in at +0.7% QoQ. While GDP is likely to contract in Q3 due to the lockdowns in NSW and VIC, today's stronger economic data points to the economy on a better footing in Q2. All else equal, this should help dampen some speculation the RBA could reverse their taper decision at next week's meeting.”

“Reclaiming the 0.7340 level on a sustained basis would cement the AUD/USD pair comfortably back into its trading range from the weeks before its mid-August breakdown that spans up toward 0.7415 (+/-).”

“We would look for dips back toward the 0.7310/20 zone to be bought as long as sentiment remains otherwise strong and spillover effects from China do not start to take root elsewhere.”