AUD gains after speculation of weaker than expected US GDP

The Australian dollar has pushed higher overnight after rumours of an expected low US GDP figure weakened the greenback across the board.

After being kept to a fairly tight trading range, the Aussie closed at 0.7556 onshore yesterday. It then dipped to a low of 0.7541 before heading upwards. Speculation that the gross domestic product for the States would come in around 3 per cent, rather than the forecast 3.5 per cent, drove the USD lower. The AUD marched upwards, reaching an overnight high of 0.7602. It has managed to hang onto most of those gains, opening at 0.7590 this morning.

The cross rates had mixed results overnight. The Australian dollar opened higher against the Yen but lower against the euro, Pound and Kiwi dollar. The AUD/EUR was kept to a 20 point range overnight, reaching a top of 0.6266.

Next week the Aussie will have local data to give it direction, the retail trade numbers and the June trade balance. But tonight the Aussie will be at the mercy of the US GDP announcement. A result outside the expected will cause some volatility in the market. It looks to have some support at 0.7540, which may be tested if that figure is above 3.5%. A poor result may help the Aussie push back above the 76 cent mark.