Australia's Gross Domestic Product has arrived, beating expectations and has propelled the Aussie to a fresh rally high.
The data has arrived as follows:
- 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).
- Australia Q3 final consumption expenditure +5.9 pct, s/adj.
- Australia Q3 gross fixed capital expenditure -0.1 pct, s/adj.
- Australia Q3 chain price index -0.1 pct.
AUD/USD has popped to fresh highs on the data, currently printing 0.7389.
Meanwhile, this rebound from the economic recession confirmed in today's data will be compared to the rhetoric of the RBA's governor Phillip Lowe who is speaking before the Parliament Economic Committee at time moment.
Markets are keen to know if there is going to be a shift away from its relaxed stance on the relatively strong AUD.
In the main, more easing (and especially negative rates) looks quite unlikely, which has underpinned the currency to date.
RBA's Lowe: Prepared to do more if it is required
Description of Gross Domestic Product
The Gross Domestic Product released by the Australian Bureau of Statistics is a measure of the total value of all goods and services produced by Australia. The GDP is considered as a broad measure of economic activity and health. A rising trend has a positive effect on the AUD, while a falling trend is seen as negative (or bearish) for the AUD.
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