The GDP report didn’t give the Australian Dollar any chances. Overview for 07.03.2018

AUDUSD is retreating on Wednesday after Australia published rather weak GDP report.

The Australian Dollar is under pressure from “bears” once again. The current quote for AUDUSD is 0.7802.

It became known today that the Australian GDP in the fourth quarter 2017 added only 0.4% q/q after expanding by 0.7% q/q the quarter before and against the expected reading of +0.5% q/q.

Yesterday it was said that the main problem of the Australian economy was the low level of household spending despite the fact that the labor market was quite stable. Mostly, this is due to the low salary growth rate, but no one can make businesses raise salaries if this process doesn’t occur as a matter of course. Employers are very careful and it’s quite clear why: both national and Chinese statistics are pretty mixed, although the commodity sector seems fine.

Unlike the USA and several other countries, Australia hardly ever revises its published statistics, so there is no point in expecting any improvements in numbers in the nearest future. However, one shouldn’t exclude a possibility that the reading in the first quarter 2018 may be much better thanks to consumers’ becoming more active.

Another thing that may support the Aussie is the USD weakness, which started yesterday.

RoboForex Analytical Department