Wednesday, 05 December 2012 09:56
SYDNEY/WELLINGTON: The Australian dollar held near two-month high against the US dollar on Wednesday, shrugging off slightly weaker-than-expected GDP data on top of an interest rate cut earlier in the week.
Aussie steady at $1.0470, having climbed to $1.0485 in offshore trade. A break above the Nov high of $1.0491 could see a test of $1.0520, the Sept 21 peak. Traders cite stops above $1.0520/30, with larger ones above $1.0570.
Long-term trendline found at $1.0565 and a break above would be very bullish. Support seen at $1.0460 and $1.0430/35.
Australia's economy grew a moderate 0.5 percent last quarter vs forecasts of a 0.6 pct rise with declining export earnings and a cresting mining boom pointing to tougher times ahead.
GDP reading does little to change market odds of further easing, following Tuesday's quarter point cut to a record-matching low of 3.0 pct.
Interbank futures suggest a 50-50 chance of a follow-up rate cut in February, ...