The Australian Dollar is falling due to the statistics. Overview for 06.03.2019

AUDUSD is quickly retreating in the middle of the week; the Aussie is responding to the GDP report. 

The Australian Dollar is getting weaker against the USD this week: on Wednesday, the pair continues falling. The current quote for the instrument is 0.7032.

In the morning, Australia reported on the GDP in the fourth quarter 2018. The indicator expanded by 0.2% q/q after adding 0.3% q/q and against the expected reading of +0.5% q/q. The same happened on YoY: the GDP added 2.3% after expanding by 2.8% in the quarter before. 

The key negative numbers come from declines in the building sector and the mining industry. At the same time, there are positive moments, such as oil and gas extraction (+7.7% q/q), public investments (+6.3% q/q), and healthcare (+2.3% q/q).

On the one hand, the GDP growth rate slowdown can be blamed on the trade wars between the USA and China, as well as Australia’s own tensions with China. On the other hand, after Australia decided to shut down most of the mining industry, it would be rather illogically to expect the economy to improve at a pace to be envied, because it requires a lot of time to recover. 

The Aussie plunged significantly against the USD in response to the statistics – so far, the Australian currency remains weak.