4 Sep 2013
Aus GDP reinforces on-hold RBA, paves way for higher AUD
FXstreet.com (Barcelona) - The latest Australian GDP number, which has come at +0.6%, in line with market expectations, and slightly above calls on the YoY s/Adj reading, 2.6% vs 2.5%, combined with the removal of the easing line by the RBA statement yesterday, is a reinforcement for RBA to stay on hold the next few months.
The RBA has recently communicated it will not rush to cut again, although has not denied it will not either, sending the message that if any new cut is to take place, it will be largely dependable on domestic indicators and $A value. So the latest two events, that is, yesterday's rba + today's GDP reinforces case for the RBA to stay on hold unless they start to see AUDUSD breaking above key levels such as 0.93/0.9350. Sentiment points set to stay heading into the NFP print.
The RBA has recently communicated it will not rush to cut again, although has not denied it will not either, sending the message that if any new cut is to take place, it will be largely dependable on domestic indicators and $A value. So the latest two events, that is, yesterday's rba + today's GDP reinforces case for the RBA to stay on hold unless they start to see AUDUSD breaking above key levels such as 0.93/0.9350. Sentiment points set to stay heading into the NFP print.