Australia: Q3 GDP likely to rise by 0.6% – ANZ

Felicity Emmett, senior economist at ANZ, suggests that after the release of key partial indicators this week for the Australian economy, they are expecting a rise in GDP of 0.6% q/q in Q3 whch would see annual growth lift to 1.7%.

Key Quotes

“This is in line with our preliminary estimates released last Friday, with the impact of the partial data this week netting out. The main new pieces of information since then are weaker inventories, profits, and sales volumes, offset by stronger government spending and net exports.”

“Once again, private demand looks to have been very weak. We estimate a rise of just 0.1% q/q, which would leave annual growth in negative territory at -0.2%. The mainstay of economic growth remains public demand, which looks to have contributed 0.35ppt to quarterly growth. This highlights the difficulty for the government and the RBA in generating measures to support the economy when public spending is already the key driver of growth.”

“GDP growth, at +0.6% q/q and +1.7% y/y, looks to be broadly in line with what the RBA expected a month ago.”

“In the GDP report tomorrow, the focus will once again be on the household indicators – consumption and income. Soft retail sales volumes (-0.1% q/q) point to relatively modest growth in consumer spending.”

“Our view is that the GDP data will likely provide a bit more confirmation that the Bank will need to provide some extra stimulus to the economy next year in order to gradually push the unemployment rate down, generate better wages and household income growth and eventually lift inflation into the target band.”

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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Latest Forex News

Editors’ Picks

BOJ maintains its monetary policy settings in July, as widely expected

At its July monetary policy review meeting concluding on Wednesday, the Bank of Japan (BOJ) board members decided to keep rates unchanged at -10bps while maintaining a 10yr JGB yield target at 0.00%.

Read more

AUD/USD off five-week highs, battles 0.70 amid coronavirus vaccine hopes

AUD/USD is off the five-week highs to battle 0.7000. The pair benefits from the risk-on market mood amid coronavirus vaccine hopes. The bulls remain undeterred by the latest US-China tensions. 


EUR/USD hits four-month high of 1.1423

EUR/USD prints a four-month high of 1.1423 in Asia. The pair witnessed a bullish breakout above 1.1349 on Tuesday. The pair closed well above 1.1349 on Tuesday, invalidating the bearish lower high setup created on the daily chart on June 23.


Gold: Daily chart shows temporary uptrend exhaustion

Gold's daily chart shows a bearish divergence of the MACD, a sign of uptrend exhaustion. A break below the 10-day SMA could prove costly. The metal looks vulnerable to price pullback.

Gold News

Chart of the Day: DXY

The DXY is in a "bear flag" pattern currently and the target is well below the 94.00 level on a breakdown. However, there is a downtrend line (blue) and if this is broken it will negate the bear flag and turn ...

Read more