Australian Treasurer: Road ahead will be long, hard and bumpy


Australia has begun to recover from the economic fallout of the pandemic, but the federal treasurer Josh Frydenberg is warning there is still a “bumpy” road ahead again.

Frydenberg has repeated that the road ahead will be long, hard and bumpy but said that today's third-quarter Gross Domestic Product was a major step forward in the economic recovery.

“This is a very serious situation with China, which is the largest trading partner,” he said commenting on the Australian-Sino trade row.

We saw a rebound from the economic recession confirmed in today's GDP data:

  • Australia Q3 real GDP +3.3 pct QoQ, s/adj (Reuters poll +2.6 pct).
  • Australia Q3 real GDP -3.8 pct YoY, s/adj (Reuters poll -4.4 pct).

This data fell during the RBA's governor Phillip Lowe comments before the Parliament Economic Committee at time moment. 

The Aussie has been underpinned by his bullish appraisal of the data and a risk-on environment pertaining to the prospects of a global economic recovery and international commodities trade environment. 

AUD/USD printed a fresh rally high of 0.7389 after the data but the leg work was already done on Wall Street with stocks reaching all-time highs and vaccine sentiment at the core of the bid. 

 

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