The Australian dollar moves away from its lows after the publication of annual growth rate in the first quarter well above expectations and despite a new tightening down of the central bank (RBA) a day earlier.

Australian's GDP has increased by 1.3% over the first three months of 2012 whereas the consensus of economists was expecting a growth of only 0.5%. For the last quarter of 2011, the island-continent had an estimated GDP of 0.4%, which was revised to 0.6%. Australia's currency has increased of almost 100 pips after the announcement of this reassuring indicator about economic health. At the end of the last week, it was at its lowest level, under USD 0.96.

Less than 24 hours before, the RBA had cut again its rate by 25 basis points, bringing it to 3.5% due to the weak domestic activity, difficulties in Europe and slowing growth in China whose industry consumes large quantities of australian raw materials.

If the combination of these events offers a clear start to the Australian dollar, it could be short lived. Ranked among the risky assets, the AUD remains largely correlated with the evolution of the euro when only the US dollar and Yen are considered as “safe currency”.

Technically, the Australian dollar picked up again due to contact with the USD 0.9838 resistance, giving the opportunity to sell in the direction of our support to USD 0.9643.