Trading the News: Australia Gross Domestic Product (GDP)
Updates to Australia’s Gross Domestic Product (GDP) report may spark a bullish reaction in AUD/USD[1] as the growth rate is expected to pick up to an annualized 2.7% from 2.4% during the last three-months of 2017.
Even though the Reserve Bank of Australia (RBA)[2] keeps the cash rate at the record-low in June, signs of stronger growth may encourage Governor Philip Lowe and Co. to gradually alter the monetary policy outlook over the coming months as ‘members agreed that it was more likely that the next move in the cash rate would be up, rather than down.’
As a result, a positive development may heighten the appeal of the Australian dollar[3] as it puts pressure on the RBA to raise the official cash rate (OCR) off of the record-low, but a below-forecast GDP print may fuel the recent pullback in the exchange rate as market participants scale back bets for a rate-hike in 2018. Sign up and join DailyFX Currency Analyst David Song LIVE[4] for a broader discussion on current themes and potential trade setups!
Impact that Australia GDP report had on AUD/USD during the previous quarter
|
Period |
Data Released |
Estimate |
Actual |
Pips Change (1 Hour post event ) |
Pips Change (End of Day post event) |
|
4Q 2017 |
03/07/2018 00:30:00 GMT |
2.5% |
2.4% |
