Australian Dollar Edges Higher as 1Q GDP Tops Estimates

Talking Points:

• Australian Dollar climbs more than 0.7% versus the US Dollar
• 1Q GDP 2.3% y/y and 0.9% q/q vs 2.1% y/y and 0.7% expected
• Better than expected data supports RBA’s neutral policy tone

The Aussie climbed more than 0.7 percent versus its US namesake after the release of Australia’s first quarter GDP. The data proved to top estimates across the board with the country growing 2.3 percent (YoY) and 0.9 percent (QoQ) versus 2.1 percent (YoY) and 0.7% (QoQ) expected. Yesterday the Reserve Bank of Australia remained neutral in its monetary policy stance rather than turning dovish. This drove the Aussie higher. Today’s data release did not offer traders an incentive to go short since the economic release supports RBA’s monetary policy stance. This likely caused the Aussie to edge higher.