Monday 6 June 2016

Australian dollar has received support

Since the beginning of the last week AUD was showing sensitivity to Australian statistics - we could sense market uncertainty about the future of monetary policy on the continent. So the Building Approvals index, which came out better than expected - 3.0% (vs. forecasts for  -3.1%) led to the growth of the Australian dollar by 25 points.
The growth of the economy for the first quarter also supported the Australian dollar, data came out higher than expected: 1.1% compared with 0.8% forecast. Data registered record high.
If we take an annualized basis, the Australian economy has added 3.1% compared to expectations of 2.8%. Exports rose by 4.4%, which added 1% to GDP growth.
Such indicators may affect the RBA in their future plans of easing monetary policy through lower interest rates.
Reverse effect on the Australian dollar may have only USD with its labor market data, released on Friday.


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