FXStreet (Barcelona) – The 2.3% annual GDP growth print in Australia has dampened expectations for further rate cuts by the RBA in the near-term, according to Lee Hardman, Currency Analyst at Bank of Tokyo-Mitsubishi UFJ.
Key Quotes
“The Australian dollar has strengthened in the Asian trading session following the release of the stronger than expected Australian GDP report for Q1. The report revealed that the Australian economy expanded by 0.9% in Q1 and by an annual rate of 2.3% which is still running below potential growth.”
“Economic growth in Q1 was boosted by very strong export growth as new mining projects commenced production and strong farm exports. Household consumption growth continued to remain despite weak income growth as savings were drawn down. The negative hit to Australia’s terms of trade from lower commodity prices continued falling by further 2.9%.”
“The report has dampened expectations that the RBA will deliver further monetary easing helping to support the Australian dollar in the near-term”
(Market News Provided by FXstreet)