The Australian Dollar is still being sold. Overview for 07.12.2016
07.12.2016
Another weak statistics knocked down the Australian Dollar; sales aren’t increasing, but still continue.
On Wednesday afternoon, the Australian Dollar is trading downwards against the USD. The current quote for the instrument is 0.7454.
Investors were disappointed by the statistics published today. In the third quarter of 2016, the Australian GDP lost 0.5% q/q instead of adding 0.3% q/q, just as expected. Moreover, the reading for the second quarter was revised from 0.6% q/q to 0.5% q/q. On YoY, the indicator increased only by 1.8% against expectations of 2.5%.
Decline of the Aussie turned out to be not so significant as today’s GDP readings. Earlier, large banks published the research results, which mentioned possible risks of too slow growth of the country’s DP in the future. That was also when several economists said that there might be negative numbers even in the third quarter. This came true too fast: market players don’t seem to realize this yet.
On top of that, the expectations of rather slow rate of the GDP growth in 2017 are increasing, even considering selling coal and iron ore. Commodity assets rally isn’t expected to continue for a long time and can’t be a proper long-term catalyst.
RoboForex Analytical Department
On Wednesday afternoon, the Australian Dollar is trading downwards against the USD. The current quote for the instrument is 0.7454.
Investors were disappointed by the statistics published today. In the third quarter of 2016, the Australian GDP lost 0.5% q/q instead of adding 0.3% q/q, just as expected. Moreover, the reading for the second quarter was revised from 0.6% q/q to 0.5% q/q. On YoY, the indicator increased only by 1.8% against expectations of 2.5%.
Decline of the Aussie turned out to be not so significant as today’s GDP readings. Earlier, large banks published the research results, which mentioned possible risks of too slow growth of the country’s DP in the future. That was also when several economists said that there might be negative numbers even in the third quarter. This came true too fast: market players don’t seem to realize this yet.
On top of that, the expectations of rather slow rate of the GDP growth in 2017 are increasing, even considering selling coal and iron ore. Commodity assets rally isn’t expected to continue for a long time and can’t be a proper long-term catalyst.
RoboForex Analytical Department
Attention!
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.