The Australian dollar fell against major opponents in the Asian session on Wednesday, after data showed that the country's economy grew less than expected in the third quarter.
Data from the Australian Bureau of Statistics showed that Australia’s GDP grew by a seasonally adjusted 0.3 percent in the third quarter.
This did not correspond to the expected growth of 0.6 percent and decreased from 0.9 percent in the second quarter.
In annual terms, GDP increased by 2.8 percent, again not matching the projected growth of 3.3 percent after growing by 3.4 percent three months before.
The Australian currency was affected by risk aversion due to concerns about the impending recession. Skepticism regarding the truce achieved between US President Donald Trump and Chinese President Xi Jinping also influenced the markets.
The Australian dollar fell to a weekly low of 0.7282 against the US dollar, from a high of 0.7356, at 19:05 EST. The 0.71 area is seen as the next likely support level for the Australian dollar.
Rising to 82.99 against the yen at 7:25 pm ET, the Australian dollar changed direction and dropped to a weekly low of 82.28. Australian currencies will find support in the 81.00 area.
The last Nikkei survey showed that Japan’s service sector continued to expand in November, albeit at a slow pace. PMI was 52.3.
In October, the figure was 52.4, although it is still above the 50-point line, which separates expansion from reduction.
The Australian dollar weakened to a 5-day low of 1.5548 against the euro, rising to 1.5422 at 7:05 pm ET. The Australian dollar will find support in the 1.58 area.
The Australian dollar hit a weekly low of 0.9678 against the Canadian dollar from its early 2-day high of 0.9749. The next possible support for the Australian dollar is observed in the area of 0.95.
The Australian dollar fell to an 8-month low of 1.0525 against the New Zealand dollar, and after that held steady. At yesterday's close, the pair was trading at 1.0589.
PMI from major European economies and euro zone retail sales for October will be published in the European session.
ADP payroll data for November will be released at 8:15 am ET.
The Bank of Canada will announce its decision on the interest rate at 10:00 am ET. Economists predict that the base rate will remain unchanged at 1.75 percent.
At the same time, the ISM non-manufacturing composite index for November will be released.
The Federal Reserve System Beige Book Report is due at 14:00 ET.