Australian Dollar Little-Changed After 2Q GDP Data

Talking Points

• Aussie Dollar little-changed after mostly in-line 2Q GDP data
• GDP +3.3% y/y in 2Q as expected, up from +3.0% y/y in 1Q
• Data offered limited guidance on future RBA interest rate moves

The Australian Dollar was little-changed as second-quarter GDP figures crossed the wires. The data printed mostly in line with expectations, giving little guidance for future Reserve Bank of Australia interest rate moves. The year-on-year output growth rate registered at 3.3 percent, in line with consensus forecasts. The quarter-on-quarter gain clocked in at 0.5 percent, a hair lower than the 0.6 percent projected by economists.

Australia’s benchmark 2- and 10-year government bond yields stayed relatively flat after the data crossed the wires, hinting that the GDP figures did not materially alter established outlook for the near-term direction of Reserve Bank of Australia monetary policy. This seems to explain the Aussie’s relative indifference in the data release’s aftermath.