The Australian economy grew by 0.6% in Q1 2013, slightly lower than a growth rate of 0.7% that was expected. The year-over-year growth rate stood on 2.5% instead of 2.7% predicted.
This small disappointed was joined more negative talk and resulted in a slide of the Aussie: the drop from around 0.9650 to 0.9570 was steady and constant.
GDP Data
- Investment in machinery and equipment dropped by 6.9% and this provides more evidence of the “end of the mining boomâ€. However, exports continued growing: +1.1%.
- Household spending rose by 0.6% or 2% annually – the slowest since 2009. Also domestic demand is weak: it squeezed by 0.3% in Q1 after hardly growing in Q3 and Q4 2012.
- A big drop was seen in public spending: 15.3%. Will the government wake up and try to stimulate the economy before the elections?
AUD/USD Steady Decline
The 0.9580 line now turns into resistance once again. Support is found at 0.9527 – the new low seen after the breakout. For more levels, see the AUD/USD forecast and here is a live chart of the pair:
new TradingView.widget({
“width”: 610,
“height”: 400,
“symbol”: “FX:AUDUSD”,
“interval”: “60”,
“toolbar_bg”: “#E4E8EB”,
“hide_side_toolbar”: false,
“allow_symbol_change”: true
});
Get the 5 most predictable currency pairs
