Never miss a story from David Cottle

Subscribe to recieve updates on publications
Please enter valid First Name
Please fill out this field.
Please enter valid Last Name
Please fill out this field.
Please enter valid email
Please fill out this field.
Please select a country

I’d like to receive information from Daily FX and IG about trading opportunities and their products and services via email.

Please fill out this field.

Your Forecast Is Headed to Your Inbox

But don't just read our analysis - put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk.

Your demo is preloaded with £10,000 virtual funds, which you can use to trade over 10,000 live global markets.

We'll email you login details shortly.

Learn More about Your Demo

You are subscribed to David Cottle

You can manage you subscriptions by following the link in the footer of each email you will receive

An error occurred submitting your form.
Please try again later.

Talking Points:

  • Australian third quarter GDP growth came in at 0.6% on the quarter, 2.8% on the year
  • These aren’t bad figures, but the markets had hoped for more
  • The Aussie Dollar duly suffered

Just getting started in the AUD/USD trading world? Our beginners’ guide is here to help

The Australian Dollar took a fall Wednesday after official Gross Domestic Product figures for the year’s third quarter came in below expectations.

On the quarter, growth was 0.6%. That was below both the 0.7% expected and the previous quarter’s upwardly revised 0.9% gain. The annualised rise was 2.8%. This was well ahead of the second quarter’s 1.8% rise, but it was below the 3% expansion which markets had hoped for.

Still, overall the numbers aren’t too shabby, with that annualised gain Australia’s best performance since the second quarter of 2016. That said the markets had clearly hoped for more and AUD/USD’s immediate reaction underscored their disappointment.

Australian Dollar Slips on GDP Miss, AUD/USD Range Endures

The Australian economy presents its domestic policy makers with something of a conundrum at present. Its performance remains reasonably strong on many counts, notably job creation. However, consumers are indebted, the housing market is frothy and inflation looks stubbornly low.

On its daily chart AUD/USD remains in the downtrend channel which has endured since the pair hit its 2017 highs back in September. However, a two-week period of consolidation has seen the Aussie challenging the channel top, even if it has yet to conclusively break it.

Australian Dollar Slips on GDP Miss, AUD/USD Range Endures

Some strong domestic and Chinese data gave it a nudge this week, as did some Reserve Bank of Australia commentary which seemed to evince less concern about the weakness of inflation. It’s worth remembering though that the “USD” side of AUD/USD is likely to dominate in the days ahead.

The official US employment data release is coming up this week, to be followed by the last Federal Reserve monetary policy meeting of the year, which is expected to result in an interest rate rise.

--- Written by David Cottle, DailyFX Research

Contact and follow David on Twitter:@DavidCottleFX