The Australian economy grew by 0.9% in Q3, better than 0.7% that was officially expected. In addition, Q2 was revised up from 0.2% to 0.3%. Year over year, growth came out at 2.5%, better than 1.9% in Q2.
AUD/USD was already underpinned by somewhat higher expectations and didn’t break to higher ground, but it certainly maintains its breakout above resistance.
It seems that the crash in commodity prices is not fully hurting the Australian economy. One of the reasons is that the mines are already producing quite a lot. A second reason is that the economy in the land down under also has other economic activity.
AUD/USD already made the breakout above 0.7280 and reached a high of 0.7342. Further resistance awaits at 0.7364.
In another development, RBA governor Glenn Stevens, which left policy unchanged yesterday, explained how the swings in the A$ helped balance the economy. He refers also to the previous rises in the Aussie and not only the recent fall.
