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Australian Dollar Falls After Weak GDP Data

The Australian dollar slipped against its major counterparts in the Asian session on Wednesday, after a data showed that nation's economy grew less than expected in the third quarter.

Data from the Australian Bureau of Statistics showed that Australia's GDP rose a seasonally adjusted 0.3 percent on quarter in the third quarter.

That missed expectations for an increase of 0.6 percent and was down from 0.9 percent in the second quarter.

On a yearly basis, GDP expanded 2.8 percent - again missing forecasts for 3.3 percent and down from 3.4 percent in the three months prior.

The currency was weighed by risk aversion as a yield curve inversion, or short-term debt yields trading above longer-term debt yields, stoked fears about an upcoming economic slowdown. Mounting skepticism about the trade war truce reached between U.S. President Donald Trump and Chinese President Xi Jinping also weighed on the markets.

The aussie dropped to a weekly low of 0.7282 against the greenback, from a high of 0.7356 seen at 7:05 pm ET. On the downside, 0.71 is seen as the next likely support level for the aussie.

Having climbed to 82.99 against the yen at 7:25 pm ET, the aussie reversed direction and slipped to a weekly low of 82.28. The aussie is poised to find support around the 81.00 mark.

The latest survey from Nikkei showed that Japan services sector continued to expand in November, albeit at a fractionally slower pace, with a PMI score of 52.3.

That's down from 52.4 in October, although it remains well above the boom-or-bust line of 50 that separates expansion from contraction.

The aussie weakened to a 5-day low of 1.5548 against the euro, after rising to 1.5422 at 7:05 pm ET. The aussie is seen finding support around the 1.58 mark.

The aussie hit a weekly low of 0.9678 against the loonie, off its early 2-day high of 0.9749. The next possible support for the aussie is seen around the 0.95 level.

The aussie declined to an 8-month low of 1.0525 against the kiwi and held steady thereafter. At yesterday's close, the pair was worth 1.0589.

Looking ahead, PMIs from major European economies and Eurozone retail sales for October are due in the European session.

At 8:15 am ET, ADP private payrolls data for November is scheduled for release.

The Bank of Canada announces its interest rate decision at 10:00 am ET. Economists forecast the benchmark rate to remain unchanged at 1.75 percent.

Simultaneously, U.S. ISM non-manufacturing composite index for November is set for release.

The Federal Reserve's Biege book report is due at 2:00 pm ET.

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