AUDUSD to extend declines to 0.7330, 0.7213

Latest GDP figures threw a surprise with Q3 GDP showing a 0.5% contraction. With inflation staying weak, the prospects for RBA's rate cuts, as early as January cannot be ruled out. Technically, AUDUSD has formed a bearish flag pattern with resistance seen at 0.7450 region. A continuation to the downside will see a test to 0.7330, 18/11 close followed by a move to 0.7213 (May-June lows). The downside is likely to extend towards 0.7070 over the coming months.