Strong data boosts Australian dollar

7 June, 2018

The Australian dollar is powering ahead in today’s trading session after another strong round of economic data marked the second time this week that news has come in above expectations.

On Monday, the retail sales figure from Australia came in at 0.4 percent against analysts’ expectations for a figure of 0.2 percent and well above the previous month’s figure of 0 percent.

GDP figures released earlier today hit the market at 3.1 percent against expectations for a figure of 2.9 percent marking the highest level in 6 years.

The most important thing was the 3.1 percent figure came earlier than the reserve Bank expected which led some to speculate the central bank may put a rate hike on the table in the nearest future but others are not so sure.

"Private consumption nearly 60% of GDP was feeble in this report and fuels ongoing concerns about a household credit crunch curbing spending going forward. The RBA adds to these concerns by regularly claiming that the outlook for consumption is the Bank’s main source of “uncertainty”," says Annette Beacher, chief Asia Pacific macro strategist at TD Securities.

"3% GDP growth now may be a little early for the RBA as the mid-year projection was 2¾% but the Bank has been saying for a while that GDP will be just over 3% this year and next. We need inflation and wages growth to get them to budge off their neutral perch." She added.

The RBA sounded quite content yesterday to leave rates on hold in their statement after their latest interest rate decision but were caught off guard by today’s strong GDP numbers, which will give them something to ponder over in the run up to next month’s rate decision


Source link   Presented by FIBO Group

AUD Declines on Strong Trade Data

The Australian dollar declined after the country released trade data for September. Numbers from the Australian Bureau of Statistics...

Australian dollar rally set to end

The Australian dollar has rallied substantially over the past month, buoyed by rising commodity prices such as Iron ore, the country's biggest export...

AUD Rises Ahead of RBA Decision

The Australian dollar rose in early trading as the markets waited for the interest rates decision by the country's central bank. The bank is expected...


Aussie falls on inflation data

Both the Australian dollar and Australian stocks declined today after the country released its third-quarter inflation numbers. In the quarter...

Currency Point: All priced in for the AUD

Over the past 4 months, the AUD has consistently been at the bottom end of the G10 currencies. This slide has been driven by the market...

GBP/USD pares gains as Brexit uncertainty continues

Australian stocks were relatively unchanged today after the RBA released the financial stability report. In the report, the bank said that the world...


Aussie dollar lowest in 10 years

The Australian dollar hits its lowest level in nearly a decade in yesterday's trading session after a threat by US President Donald Trump to slap...

AUD/USD could climb further

Further upside could see AUD/USD testing the mid-0.7000s in the next weeks, according to FX Strategists at UOB Group...

More rate cuts to hit Aussie dollar

The Australian dollar has held up pretty well over the past few days against its US counterpart despite the rate cut delivered this week by the...

  


Share it on:   or