The Aussie Dollar treads water amid a strong USD and weak Australian data.
Australian Gross Domestic Product slowed down beyond expectations in Q1.
A positive surprise on US jopb openings has provided some support to the USD
The Australian Dollar is practically flat on the daily chart, moving back and forth around the 0.6450 area, following a reversal from the 0.6500 area on Thursday, after downbeat data and dovish RBA minutes.
The minutes of the latest RBA monetary policy meeting revealed that the bank considered a 50 bps rate cut in May, and that they are ready to deliver “rapid-fire” monetary policy actions if US tariffs hurt Australian economic growth.
Soft Australian data is weighing on the Aussie
Australian data was not particularly supportive either. Weaker-than-expected GDP growth in the first quarter, coupled with a larger-than-expected current account deficit, and an unexpected contraction in businesses’ gross operating profits seen on Tuesday, have added bearish pressure on the pair.
Data released on Wednesday showed that Australia's economy grew at a 0.2% pace in the first three months of the year, well below the 0.4% expected, following a 0.6% advance in the previous quarter. Year-on-year, the GDP remained steady at 1.3%.
In the US, on the other hand, US JOLTS Job Openings increased against expectations in April, with 7.39 million new jobs, well beyond the 7.1 million expected. These figures pushed US debt and trade tariff fears to the back seat and provided some support to the US Dollar.
Investors, however, seem to have adopted a more cautious stance on Wednesday, awaiting the release of the US ADP employment report, which will frame Friday's Nonfarm Payrolls release, and the ISM Services PMI. These figures are likely to set the US Dollar’s near-term direction later today.
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