THE TAKEAWAY: Australian 3Q GDP grew in-line with expectations at 0.6 percent on a quarterly basis > FX traders may focus greater attention to risk trends as rate cuts and moderate growth produce little volatility > Aussie unchanged
The Australian Dollar was little changed as third quarter gross domestic product posted in-line with expectations at 0.6 percent growth on a quarterly basis and 3.1 percent growth on a yearly measure. Today’s release came just one trading day after the Reserve Bank of Australia reduced its benchmark lending rate which was also highly anticipated and, like today’s in-line GDP release, also produced no meaningful market movement.
Forex traders appear little affected after the Aussie’s most attractive yield feature has been reduced and growth has not been particularly robust as of late. However, FX markets may begin to pay greater attention to risk sentiment trends as measured by changes in U.S. equity indicies as price action on the S&P 500 suggests risk appetite trends may find a bit of resistance.
AUD/USD, 1 Minute Chart
S&P 500, Daily Chart