Australian GDP for Q4 Delivers A Solid Beat

March 5, 2014 in Forex Fundamentals and News

GDP numbers for Australia for the last quarter of 2013 have just been declared.

Quarter-on-quarter, GDP grew 0.8% against analysts’ consensus of 0.7%. In the previous quarter ended September, GDP had grown 0.6%.

On a year-on-year basis, Australian GDP rose 2.8% while analysts had estimated 2.5%.

Australian economy is performing better than expectations

The release by the Australian Bureau of Statistics is as follows:

“Latest Australian Bureau of Statistics (ABS) figures show that GDP, in seasonally adjusted volume terms, grew 0.8 per cent in the December quarter 2013.

Growth for the quarter was driven by a 0.6 per cent contribution from Net Exports and a 0.5 per cent contribution from Final consumption expenditure. These increases were partially offset by a -0.3 per cent contribution from Gross fixed capital formation.

The Mining industry contributed 0.1 percent to GDP, as did the Manufacturing, and Rental, hiring and real estate industries.

The December quarter saw the Terms of trade increase 0.6 per cent.”

Bank rate held steady

Yesterday, the RBA held its cash rate unchanged at 2.5%, though Governor Stevens indicated in his statement that he would like to see the Aussie trading weaker.

An indication of the underlying bullishness of AUDUSD was pointed out by us yesterday when the pair showed strength immediately after the RBA decision and despite the Governor’s ‘jawboning.’

AUDUSD shoots up

The GDP beat propelled AUDUSD higher as shown in the chart below.

GDP-Beats-15M

The pair moved up from 0.89538 to a high of 0.89950 as the news broke.

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