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AUD/USD extends 0.9310 rejection after awful US GDP

FXStreet (San Francisco) - The Aussie is trading under pressure against the US Dollar following the worse than expected US GDP and now the pair is extending its rejection from 0.9310 to trade back at 0.9280.

The AUD/USD rallied in the Asian and European sessions from 0.9210 to reach fresh highest since May 19 at 0.9310 amid a well documented 0.9200 barrier option; however the pair wasn't able to maintain gains and now it is trading sub 0.9300 prices.

The United States registered a negative growth of 1.0% in the Q1 according to the 2nd review of the Bureau of Economic Analysis. It was worse than the most pessimistic expectations. On the other hand, Jobless claims posted a better than expected number in the May 22 week. The 4-week rolling average for US initial jobless claims is now 311.5k, the lowest level seen since Aug 11, 2007.

Back to currencies, AUD/USD is trading now at 0.9281, up 0.49% on the day, having posted a daily high at 0.9315 and low at 0.9211. The hourly FXStreet OB/OS Index is showing overbought conditions, alongside the FXStreet Trend Index which is slightly bullish.

AUD/USD levels

The AUD/USD has "experienced what I'm calling a short-covering rally to a session high 0.9302," comments Gerry Davies from FXBeat. "We've presently back at 0.9290 amid reports of 'macro fund' offers at 0.9300/10."

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