Australia's economy grew slightly.

The Australian dollar remained steady, supported by domestic economic data showing only a slight slowdown. Economic growth data indicated a 0.1% expansion in the first quarter, down from a 0.3% increase in the previous quarter, disappointing investors who had anticipated a rate cut by the Reserve Bank of Australia (RBA) soon. The probability of such a rate cut has now dropped to just 44%.

RBA Governor Michele Bullock added that further interest rate hikes might be necessary if inflation remains persistent. The current steady interest rates and inflation pose continuous challenges and pressures on the domestic economy. The slowdown in GDP growth also reflects a cooling labor market.

Australia's exports contracted by 2.5% year-on-year, hitting a two-year low of AUD 43.32 billion in April. Export declines were noted across several industries, including metals, minerals, meat, prepared meat, and grains, with most falling by more than 3.5%. Meanwhile, gold sales increased by over 9.2%, amounting to AUD 2.98 billion.

Australia's trade surplus for goods rose to AUD 6.55 billion in April, up from AUD 4.84 billion in the previous month, as exports decreased less than imports. Imports to Australia fell by 7.2% year-on-year to AUD 36.77 billion in April, with imports of intermediate goods and others dropping 9.6% to AUD 15.36 billion. Additionally, capital goods purchases contracted by 5.8% to AUD 9.0 billion, pressured by a slowdown in domestic manufacturing and consumer demand, while fuel and energy imports decreased by more than 8.9%.

Australia's economy grew 0.1% quarter-on-quarter in Q1 2024, slowing down from a 0.3% increase in Q4 of the previous year, marking the weakest growth in six quarters amid declining domestic demand. This reduction led to decreased domestic consumption, corporate profitability, and consumer goods imports, as household expenses increased by 0.4%, primarily in essential costs such as electricity, water, rent, food, and health.

Techical analysis data (5H)

Resistance: 1.5181, 1.5231, 1.5325

Source: Investing.com

Buy/Long 1: If the price touches support in the price range of 1.4943 - 1.5037 but cannot break the support at 1.5037, you may set a TP at approximately 1.5231 and SL at around 1.4893 or according to your acceptable risk.

Buy/Long 2: If the price breaks the resistance in the price range of 1.5181 - 1.5231, you may set a TP at approximately 1.5325 and SL at around 1.4943 or according to your acceptable risk.

Sell/Short 1: If the price touches resistance in the price range of 1.5181 - 1.5231 but cannot break the resistance at 1.5181, you may set a TP at approximately 1.4943 and SL at around 1.5325 or according to your acceptable risk.

Sell/Short 2: If the price breaks the support in the price range of 1.4943 - 1.5037, you may set a TP at approximately 1.4893 and SL at around 1.5231 or according to your acceptable risk.

Pivot point June 7, 2024 09:16 PM. GMT+7