{"id":29925,"date":"2026-03-05T06:59:41","date_gmt":"2026-03-05T06:59:41","guid":{"rendered":"https:\/\/www.vtmarketsglobal.com\/en\/uncategorized\/29925\/"},"modified":"2026-03-05T06:59:41","modified_gmt":"2026-03-05T06:59:41","slug":"propelled-by-robust-gdp-aud-usd-climbed-0-5-to-0-7080-remaining-under-three-year-peaks","status":"publish","type":"post","link":"https:\/\/www.vtmarketsglobal.com\/en\/live-updates\/29925\/","title":{"rendered":"Propelled by robust GDP, AUD\/USD climbed 0.5% to 0.7080, remaining under three-year peaks"},"content":{"rendered":"AUD\/USD rose 0.5% on Wednesday to about 0.7080 after earlier dipping towards 0.7000. It has moved in a 150-pip range between 0.7000 and the year-to-date high near 0.7150 for over a month, and is down about 0.65% over the past five sessions.\n\nAustralia\u2019s Q4 GDP grew 0.8% quarter-on-quarter versus a 0.6% consensus, with annual growth at 2.6% from 2.1%. Growth was driven mainly by government spending and a rebound in inventories, after the RBA lifted rates to 3.85% in February.\n\n<h3>Key Us Data And Geopolitical Risk<\/h3>\nIn the US, ADP payrolls and the ISM Services PMI beat forecasts on Wednesday. US Nonfarm Payrolls, the unemployment rate, and January retail sales are due Friday, while conflict in the Middle East and the Strait of Hormuz closure has supported USD safe-haven demand.\n\nAUD\/USD traded at 0.7079, above rising 50-day and 200-day exponential moving averages, with the Stochastic easing from overbought levels. Support is near 0.7040 and 0.7000, with the 50-day EMA around 0.6930; resistance sits near 0.7120 and then 0.7160.\n\nAUD drivers include RBA policy, a 2\u20133% inflation target, China\u2019s economy, trade balance, and iron ore, worth $118 billion a year in 2021.\n\nLooking back to early 2025, we recall a period of optimism for the Aussie dollar, fueled by strong fourth-quarter GDP growth of 2.6% annually. This strength supported the Reserve Bank of Australia&#8217;s decision to raise rates to 3.85% at the time. Today, however, the landscape has shifted, with AUD\/USD trading significantly lower around 0.6650.\n\n<h3>Outlook And Strategy Considerations<\/h3>\nThe series of rate hikes that followed the period in 2025, peaking at 4.35%, have clearly cooled the economy as intended. The most recent data for the fourth quarter of 2025 showed annual growth slowing to just 1.5%, a noticeable drop from the robust pace seen a year prior. This slowdown suggests the RBA will remain on hold for the foreseeable future, removing a key pillar of support for the currency.\n\nFurthermore, the outlook for Australia\u2019s key trading partner, China, has softened, which weighs on the Aussie. Recent figures like the Caixin Manufacturing PMI dipping to 49.8 show a manufacturing sector in slight contraction. This has contributed to iron ore prices falling to around $115 per tonne, well off their highs from last year.\n\nGiven the divergence, where the US economy remains resilient and keeps the Fed on a &#8216;higher-for-longer&#8217; path, the path of least resistance for AUD\/USD appears to be lower. Unlike the range-bound trading we saw around 0.7100 in early 2025, the current trend is decidedly downward. Derivative traders may consider buying put options to hedge or speculate on further downside, especially with key support levels now under pressure.\n\n<b><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\">Create your live VT Markets account<\/a>\u00a0and\u00a0<a href=\"https:\/\/myaccount.vtmarkets.com\/login\">start trading<\/a>\u00a0now. <\/b>\n<p>\r\n\r\n<p><strong>Start trading now &#8211; Click <a href=\"https:\/\/www.vtmarketsglobal.com\/en\/trade-now\/\">here<\/a> to create your real VT Markets account <\/strong> <\/p>\r\n<!-- \/wp:post-content -->","protected":false},"excerpt":{"rendered":"<p>AUD\/USD rebounds to 0.7080 as strong Australian GDP offsets firm US data and safe-haven dollar demand.<\/p>\n","protected":false},"author":38,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[46],"tags":[],"class_list":["post-29925","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":[],"aioseo_notices":[],"featured_image_src":null,"featured_image_src_square":null,"author_info":{"display_name":"josephine","author_link":"https:\/\/www.vtmarketsglobal.com\/en\/author\/josephine\/"},"_links":{"self":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/29925","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/users\/38"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/comments?post=29925"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/29925\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/media?parent=29925"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/categories?post=29925"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/tags?post=29925"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}