The U.S. GDP growth rate in Q3 was surprisingly revised upwardly from a preliminary reading, providing a temporary respite for concerned investors. Check out our comprehensive gold analysis to learn more about the current demand for safe-haven assets amidst mixed economic data globally.
The Bureau of Economic Analysis just posted the final GDP growth rate report for the three months leading to September. The U.S. economic growth was surprisingly revised upwardly, beating the market forecasts. Meanwhile, the dollar continues to consolidate in the short term.
As can be seen on the 4H chart above, the price action of the USDCHF pair has been exhibiting consistent behaviour over the last few weeks. Notice that upon completing a major Elliott cycle, as postulated by the Elliott Wave Theory, the price action started range-trading. This is underscored by the fact that the ADX indicator has been threading below the 25-point benchmark since the 6th of December.
The consolidation range itself spans between the 38.2 per cent Fibonacci retracement level at 0.92645 and the 61.8 per cent Fibonacci at 0.91970. The price action is now likely to drop towards the lower limit of the range once again before it finds the necessary bullish support to rebound.
The U.S. economy grew by 2.3 per cent in the third quarter, above market forecasts anticipating a 2.1 per cent expansion. Even still, the quarterly performance fell below the 6.7 per cent expansion that was recorded over the second quarter.
Interestingly enough, the 0.2 per cent upward revision is parallel to the same downwards revision that was observed in the UK over the same period This divergence between the two economies reveals the uneven pace of economic recovery globally.