Trade worries compound soft growth
The Australian dollar is down 22 pips early today to 0.6832 in an early slide that started with a soft GDP report.
The economy grew 0.4% in the quarter compared to 0.5% expected. The fall in the Australian dollar on the report was mitigated by an upward revision to Q2 to +0.6% from +0.5%.
In the past half-hour, the decline extended after the US House passed a sanctions bill related to Uyghurs and China pledged to retaliate. That sent AUD/USD to a session low of 0.6830.
In the bigger picture, this is a small dent in the +100 pip rally this week. The fall below the post-RBA low of 0.6835 is a setback but there is support at 0.6821, 0.6808 and 0.6796.
