prior was +0.6%
Lower than expected. If there was going to be a surprise, the market was looking for it to be to the topside, so this is a negative for the AUD (see preview, link above).
AUD/USD down below 0.9085 very quickly – and I reckon we see it lower. This is a poor GDP result, all the more so because the market was saying that if there was going to be a surprise it would be a positive one …. well, that didn’t happen. The lower GDP increase pressure on the RBA to keep jawboning the AUD lower, and may even hasten a rate cut?
Note, 0.9050/60 has been supported three times on moves down, there is still buying to be done there (though I’ll have to get an update on this, see if the GDP has changed the mind of buyers)
