Australia GDP Likely Reinforces RBA Statement, AUD/USD Higher
- 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)
Source: FXCM Marketscope
Jimmy Yang, DailyFX Research Team
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.