Here is the Australian Financial Review on the concerns from the Reserve Bank of Australia on today's Q2 GDP data
- The data is here: Australia Q2 GDP: +0.5% q/q (expected +0.6%, prior +1.1%)
- Initial responses from various analysts is here: Australian Q2 GDP responses: 1 "Misses expectations" 2 "Fastest growth in 4 yrs"
Says the Australian Financial Review:
- Good news on the local economy could send the Australian dollar higher, and that is not what the central bank wants
- The talk on trading desks would be along the lines that if the economy is doing well, why cut rates?
- And if there's not going to be any more rate cuts then the $A can start to rally again.
But, the piece goes on:
- Of course (today's result) won't stop the RBA from cutting the official cash rate again ... If inflation keeps falling then it will