The release of Australia’s GDP report was slightly lower than expectedadmin 11 December 2022
Gross domestic product (GDP) measures annual changes in the inflation-adjusted value of all goods and services produced by the economy. It is the most comprehensive measure of economic activity and the primary indicator of economic health.
A release of higher than expected numbers should be considered positive/bullish for the AUD, while a release of lower than expected numbers should be considered negative/bearish for the AUD.
The Australian gross domestic product (GDP) index was released at 4:00 a.m. on December 7 and came in 0.6%, 0.1% below expectations. It should be noted that the figure of the previous quarter of this index was 0.9%.
After the release of this index, we saw a relative increase in the AUD /USD parity rate in the markets.
AUD/USD fell back from its daily highs around 0.6700 after the release of the Australian gross domestic product (GDP) data on Wednesday, which fell short of expectations. The pair is trying to justify the cautious optimism of the market, but in reality the slight growth of the pair is mainly supported by the catalyst of the data related to China and the Federal Reserve.
It is worth noting that the weak data from Australia justifies the resistance of the Reserve Bank of Australia (RBA) to cut interest rates, but at the same time shows that it is ready to start the lowering process.