Investing.com - The Australian dollar rose off fresh six-year lows against the U.S. dollar on Wednesday, but gains were expected to remain limited as data earlier showed that Australia economy grew at a slower pace than expected in the second quarter.
AUD/USD hit 0.7047 during late Asian trade, the session high; the pair subsequently consolidated at 0.7039, rising 0.33%.
The pair was likely to find support at 0.6854 and resistance at 0.7156, Tuesday's high.
The Australian Bureau of Statistics reported on Wednesday that the country's gross domestic product rose 0.2% in the three months to June, compared to expectations for a 0.4% growth rate. Australia's economy expanded by 0.9% in the first quarter.
On a yearly basis, Australia's GDP increased by 2.0% in the second quarter, disappointing expectations for a 2.2% gain.
The data came a day after the Reserve Bank of Australia held its benchmark interest rate at a record-low 2.00%, saying that the now four-month long pause on rates was "appropriate" given the moderately growing Australian economy.
Meanwhile, investors remained cautious amid ongoing volatility on Asian equity markets. Shares in Shanghai plunged over 4% at the open of trading on Wednesday.
Market volatility increased after data on Tuesday showed that manufacturing activity in China contracted at its fastest rate in three years in August, while service sector activity also slowed.
The Aussie was higher against the euro, with EUR/AUD sliding 0.64% to 1.6024.