Trade FOREX with FXCM

  • Award-Winning Platform
  • 24/7 Customer Support
  • Trade Directly on Charts
  • Free $50K Practice Account

Resources

DailyFX Home / Market Alerts

Australia GDP Likely Reinforces RBA Statement, AUD/USD Higher

By Jimmy Yang
04 September 2013 02:14 GMT

Talking Points:

  • AUD/USD higher as Australia reports better-than-expected second quarter GDP figures
  • Stronger growth likely reinforces yesterday’s RBA policy statement, reduces expectation for near-term rate cuts
  • Investors likely looking towards U.S. Non-Farm Payrolls, G-20 Summit, Australia general election

The Aussie rallied against the U.S. Dollar on positive second quarter GDP data. The economy grew 0.6 percent quarter-over-quarter and 2.6 percent year-over-year, topping expectations for gains of 0.5 and 2.4 percent respectively. This uptick likely reinforces yesterday’s Reserve Bank of Australia policy statement in reducing investor expectations for rate cuts over the near to medium term.

However, event risks remain for the pair. With the pivotal September FOMC meeting looming, investors will likely be looking towards Friday’s Non-Farm Payrolls data to weigh their expectations for the Federal Reserve’s monetary policy. The end of the week will also see the G-20 Leaders’ Summit in Russia starting on Thursday as well as Australia’s general election taking place on Saturday.

AUD/USD (5-Minute Chart)

Australia_GDP_Likely_Reinforces_RBA_Statement_AUDUSD_Higher_body_Picture_1.png, Australia GDP Likely Reinforces RBA Statement, AUD/USD Higher

Source: FXCM Marketscope

New to Forex? Watch this video.

Jimmy Yang, DailyFX Research Team

provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from

04 September 2013 02:14 GMT