RBA misleads investors on AUD

6 December, 2017

The Australian dollar has dropped sharply in today's Asian trading session on the back of disappointing data and throws into question yesterday's assessment of the local economy from the reserve bank of Australia.

At 3.34pm(AEDT) the Aussie dollar was trading at US75.76c down from US76.09c in yesterday's trading session.

GDP figures released from Australia hit the market earlier today at 0.6 percent against analysts' predictions for a figure of 0.7 percent and was well down from the previous quarters figure of 0.9 percent.

The yearly figure also missed consensus coming in at 0.9 percent against estimations for a figure of 3 percent.

Australian treasurer Mr Morrison brushed off the disappointing figures by noting that the Australian economy was on equal footing with the rest of the world and overall it was a good result

"The solid growth outcome in the September quarter national accounts has accelerated growth from 1.9 per cent to 2.8 per cent through the year," Mr Morrison said.

"This is above the OECD average and puts Australia back up towards the top of the pack for major advanced economies around the world." He added.

Investors were not as upbeat as Mr Morrison and sold the Aussie dollar off accordingly which may be attributed to expectations of a rate hike at the RBA's next board meeting in February has now gone.

The Australian dollar was rightly sold off as it seems the RBA was overly optimistic yesterday on the state of the Australian economy as they would have to overlook several factors in order to lift interest rates such as low inflation and as was already mentioned, underperforming GDP.

These factors should weigh on the Australian dollar and  we may see the currency come under further pressure as the year comes to a close.


Source link  
Gold may rally towards years end

After a horror 6 months the gold price has found much needed support over the last 4 weeks and is now sitting above the $1,200 mark and depending...

New tariffs lift US dollar

As widely expected, US President Donald Trump has slapped another $200 billion worth of tariffs on Chinese goods which has caused a lift in the US dollar today against the major...

Will the US dollar jump on Thursday?

The US China trade war has now come to the top of the headlines again with US President Donald Trump keen to go ahead with an extra $200 billion...


Big Money is avoiding the pound

Just when we thought that a deal between the European Union and Great Britain was in the making and thus avoiding a hard Brexit, another spanner...

Pound gains on Brexit negotiations

The British pound has surged back through the $1.30 mark after progress made today on Brexit negotiations raised speculation that a deal...

IEA report siks oil

The oil price had a rough time last week, hitting its lowest level since join after a report by the energy watchdog showed rising inventories which raises concerns over global growth...


Gold in the hands of the US dollar

The last 2 months has been extremely painful for those who invested in gold with the precious metal plummeting more than $100 and at the time...

Is Yen finished as a safe haven currency?

Along with the Swiss Franc, the Japanese Yen has historically been the other currency that the market has deemed a safe haven in times of financial instability...

Trump may drive down the oil price

The oil price has risen around 13 percent over the last 10 days which has pushed up gasoline prices in the US to uncomfortable levels and with elections...


In the past 24 hours Bitcoin has gained 2.1% and reached $6548.13088025. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has gained 1.2994% and is now at $1.1781. Start trading and making money on Forex today.

In the past 7 days Ethereum has gained 3.67% and is now at $222.467799522. Have the most popular cryptocurrencies compared online 24/7.


Top Brokers offering Daily Forex Market Reviews


Forex Currencies Forecasts


Top 10 Forex Brokers 2018

# Broker Review
1easyMarketseasyMarkets90%
2FXTMFXTM88%
3HYCMHYCM87%
4Alfa-ForexAlfa-Forex86%
5FxProFxPro85%
6FIBO GroupFIBO Group84%
7OctaFXOctaFX83%
8HotForexHotForex82%
9FXCMFXCM79%
10AvaTradeAvaTrade77%
  


Share: