AUD: Pressurized by the dismal Q3 GDP numbers - SocGen

Sandeep Kanihama FXStreet Contributor

Kit Juckes, Research Analyst at Societe Generale, notes that the biggest overnight mover is the Australian dollar, suffering from the release of weak Q3 GDP data on a day when there’s little other news.

Key Quotes

“GDP fell 0.5%on the quarter; just the fifth quarterly fall in this millennium. That took the year-over-year growth rate down to 1.5%, the slowest since 2009, all in all enough to weaken the currency by 0.4%. I’d love to have the confidence to extrapolate the start of a new downtrend for the AUD, but I’m not sure there’s much more than noise to see here, sadly. A significant move down requires worse news out of China or a turn lower in commodity prices, neither of which is really on the cards.”

“Over 2017 as a whole, we like longs in both NOK and SEK against AUD and NZD, but that’s a trade more likely to work in Q2-Q4 than right now. We will go long AUD/NZD again however, if this dips back below 1.04.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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