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Aussie dollar remains flat ahead of latest GDP figures

Xinhua, December 7, 2016 Adjust font size:

The Australian dollar remained flat and resilient against a recovering greenback, generally higher commodity prices and upcoming GDP figures.

At the Asian open on Wednesday, the Aussie was trading at 74.56 U.S. cents, edging up from 74.5 U.S. cents at the start of the week.

"AUD/USD remains in much the same trading range it has been in for the past two weeks. AUD was resilient to a recovering USD because commodity prices are generally higher (except for oil)," Commonwealth Bank of Australia currency strategist and international economist Joseph Capurso said in a note.

"AUD was supported by yesterday's mildly optimistic comments from the RBA in its post-meeting statement. The sharp narrowing in Australia's Q3 current account deficit to only 2.7 percent of GDP provides AUD with valuation support in an environment of rising global interest rates.

"AUD will today face the headwind of a very weak Q3 GDP report. The consensus of economists predict a 0.1 percent contraction in GDP."

"That would be the first contraction in GDP since Q1 2011. CBA predicts a 0.1 percent increase in GDP though there are downside risks to our forecast because business investment is weak."

"There is an outside chance the national GDP result is 'saved' by a large increase in farm production because good weather has led to sharp upward revisions to crop estimates to record levels."

At 0928 local time, the Australian dollar was trading at 74.6 U.S. cents. Endit