Australian GDP data due this week likely got a boost today. Does it matter for AUD?

The data earlier today showed a surprise beat, which will be a better than expected input into Q2 GDP

• Australia Company inventories for Q2: 0.6% q/q (vs. expected 0.2%)

Westpac response (this in very brief):

• For the June quarter, surprises in the Business Indicators survey were to the high side.
• This suggests risks to our Q2 GDP growth forecast of 0.6%qtr, 2.7%yr are tilted to the upside. Additional partial indicators will be released tomorrow (net exports and public demand)

For me, though, a good result on Q2 GDP will not necessarily be too much of a positive for the AUD. April to June data is old news by now, for one thing. The focus on developments going forward and they do like they will continue to be a negative input for the currency.

What is more likely to be of relevance is a good result on Q2 GDP would come despite all the doom and gloom we have been hearing. To me that indicates by all means be cautious on the Australian economy going forward but do keep in mind it is showing resilience. Of course, we are yet to get further indications ahead of the GDP and if they disappoint there is scope for more punishment for the AUD, the market is in that sort of mood.