Aussie Dollar Soars as Q1 GDP Data Delivers on Expectations
- The Australian Dollar gained against its major counterparts after the release of 1Q GDP
- Release showed an economic expansion of 1.7 percent y/y versus 1.6 y/y percent expected
- The as-expected slowdown defused recently building concerns about a deeper downturn
The Australian Dollar gained against its major counterparts after the release of the country’s first quarter GDP data cooled concerns about a deeper than expected slowdown at the start of the year. The currency dropped yesterday after a hefty miss on first-quarter current account data stoked fears about a deeper downturn than consensus forecasts accounted for.
Today’s release showed an economic expansion of 1.7 percent y/y versus 1.6 percent expected and 2.4 percent in the last four months of 2016. The quarterly figure showed growth through the period of 0.3 percent q/q, in line with forecasts. The RBA anticipated the slowdown and maintained a neutral posture all the same. The as-expected outcome seemed to reinforce that position, meaning rate cuts are probably not on the horizon in the near term.
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