Forex: AUD/USD surge set to extend? AU Q3 GDP eyed

FXstreet.com (San Francisco) - The Australian dollar rallied on Tuesday to hit a 5-day high against the U.S. dollar, climbing as high as 1.0483 before closing the North American session up 0.5% to 1.0470. "Having tried for a day and a half to sustainable push down through 1.0380/90 the market got itself too short and the AUD spiked sharply after the 'fact' of the RBA cut," explains Greg McKenna, Chief Executive at GlobalFX.

Mr. McKenna also says that AUD is back at the top of its "box," and "A break of 1.0489 is required to kick it higher and if we give it room to run to the convergence of the trend lines on the chart then we get an extension to 1.0535."

According to Valeria Bednarik, Chief Analyst at FXstreet.com: " In the 4 hours chart the upward momentum remains strong yet only a clear breach above 1.0510, will favor more gains in the pair. On the other hand failure at the top of recent days' range, exposes the 1.0400/30 area on a sentiment flip, quite unlikely today."

Tight ranges are to be expected in AUDUSD ahead of Q3 Australian GDP growth figures (cons: +3.2% y/y) at 00:30 GMT. "If the outcome is close to consensus, leaving annual growth above 3% and so in line with trend, this should further strengthen the view that the RBA could now be on hold until at least Q2 next year," says NAB.

AUDUSD currently exchanges at 1.0465.