Felicity Emmett, senior economist at ANZ, notes that the Australian economy grew just 0.4% q/q in Q3, below both ANZ’s and market expectations.

Key Quotes

“Q2 growth was revised a touch higher, and annual growth came in at 1.7%, just up from the 1.6% recorded in Q2, but still well below trend. The detail of the report was even weaker than the headline. Consumers and businesses essentially went on strike in Q3, with consumption and investment both very weak.”

“Overall private sector demand fell again. While the tick-up in annual growth could be viewed as a very “gentle turning point”, the slump in private sector spending will be very disappointing for the RBA. In our view, this will keep the Bank in easing mode in H1 2020.”

“With growth so narrowly based, the outlook for the economy remains very uncertain. There are few reasons to hope for a short-term recovery given that investment plans have been cut, housing approvals are still trending lower and consumer confidence remains in the doldrums. It seems inevitable that the economy will require further policy stimulus to lift it out of its current funk.”

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

GBP/USD stays below 1.3350 on poor UK PMIs

GBP/USD hits fresh session lows of 1.3335 following an unexpected drop in the UK's Preliminary Manufacturing and Service PMI reports. However, the downside appears capped amid growing Brexit optimism. 

GBP/USD News

EUR/USD keeps range around 1.1130 on downbeat PMIs

EUR/USD trims gains to trade near 1.1130 region after the sentiment around the euro was dented by the disappointing German and Eurozone Preliminary Manufacturing PMIs. Trade concerns also keep the gains limited. 

EUR/USD News

UK Elections and US-China trade: Removing Risk Factors

Following the euphoria over the decisive UK election result and the US-China "Phase 1" trade deal markets look primed to end the year on a positive footing. Two of the major risk factors threatening to detail market sentiment into year end have at least been lifted.

Read more

Gold consolidates in a range, flat-lined around $1475 level

Gold extended its sideways consolidative price action through the early European session on Monday and remained confined in a narrow trading band near the $1475 region.

Gold News

USD/JPY clings to modest gains, just below mid-109.00s

The USD/JPY pair edged higher on the first day of a new trading week, albeit lacked any strong follow-through and remained well within the previous session's trading range.

USD/JPY News

Forex MAJORS

Cryptocurrencies

Signatures