Australia’s GDP Report (7 September 01:30 GMT)

The economy of the Pacific region continues going through a tough time: GDP growth of China – the main trading partner to Australia and New Zealand –  is slowing down, tradable commodity prices remain low, domestic demand is showing no signs of improvement.

That’s why the Bank of Australia had to cut the refinancing rate by 25 basic points (from 1.75% to 1.50%) to stimulate the country’s economy.

Should the GDP figures turn out to be disappointing as well, it will have a negative effect on the Australian dollar.

What is more, this Tuesday at 07:30 GMT +3 representatives of Bank of Australia will held a meeting and they will consider whether the rate should should be changed or not.

..it is expected that the rate will remain on the same level, but market participants will pay a lot of attention on RBA Rate Statement report which will be published right after the meeting.

AUDUSD chart:

An upward trend still can not accelerate on AUDUSD D1 chart, as after each and every upward rate movement (highlighted with yellow lines on the price chart) there was a downward correction. It is highlighted on the price chart that there is a high probability of AUDUSD rate to start increasing yet again and the indicator of technical analysis “Awesome Oscillator” proves it. But traders have to be accurate as the strength of the upward trend is decreasing.