The Australian dollar is correcting. Overview for 02.09.2020

02.09.2020

By the middle of the week, the Australian dollar in pair with the US dollar have started correcting. The current quotation is 0.7347.

The morning statistics showed that the Australian GDP in the second quarter of 2020 fell by 7% (calculated per quarter). Note that from January through March the Australian economy lost 0.3% (per quarter). There has not been a decline in the economy for two months in a row since 1991.

The decline in the economy was expected to be around 6% (per quarter) but the reality turned out worse.

Compared year by year, in April-June this year, the GDP fell by 6.3% against the expected 5.3%.

The main drop was in the expenses of households – this is natural because the majority of the population got locked in the quarantine. Investments in real estate also shrank, while state expenses increased slightly. All this taken together pulled the economy down for the second quarter in a row.

For the AUD, the decline in the GDP was hardly a surprise; the fact that the USD stopped falling and started stabilizing was more important.

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Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.