Annual GDP in Australia seems like it's on the rise after posting 1.7% development YoY.The information appears to assist the concept the financial
Annual GDP in Australia seems like it’s on the rise after posting 1.7% development YoY.
The information appears to assist the concept the financial system has reached a ‘light turning level’ as advised by the RBA.
That stated, QoQ GDP missed the mark coming in at 0.4%. So whereas there may be optimistic information, in that GDP is up from file low ranges, we’re nonetheless a good means off what the RBA want to be seeing.
As such, the markets are nonetheless anticipating to see one other charge reduce in February 2020, which might take the OCR all the way down to 0.5%. The bottom because the 1950s.
On the identical time, the AUD/USD has staged considerably of a rally in current instances. However that’s probably not been on the again of a powerful Aussie financial system, relatively extra USD worries. With Trump firing up the commerce wars once more, we’ve seen each equities and the Buck decline and that has pushed the AUD into 0.6850.
The speedy response to the GDP print has been just a little muted. The mainstream media will level to enhancing development, nevertheless, the QoQ did miss.
As such the AUD/USD is falling away a contact, albeit slowly.
There at the moment are a few key ranges of notice, with resistance at 0.6850 and resistance turned assist at 0.6800 being the large one.
The commerce wars will possible see the USD just a little flat for just a few weeks and it’s now off its November highs.
I’m nonetheless bearish on the Aussie and anticipate to see a fall away…