- December 6, 2017
- Posted by: admin@diversi_@finance
- Category: News
Australia gross domestic product (GDP) rose 0.6% q/q in the third-quarter of this year, missing market expectations of 0.7% q/q/ growth, down from revised 0.9% q/q increase seen the previous quarter. On an annual basis, it climbed 2.8% y/y, which is lower than the Reuters’ median consensus of 3% y/y growth, but it is way better from prior 1.8% y/y.
However, increased activity in both private business investment and public infrastructure underpinned broad growth across the industries. On the other hand, net exports contribution to growth was flat this quarter despite higher mining production and exports of coal and iron ore. The terms of trade fell 0.4% on the back of lower export prices.
We do not expect any change in the RBA policy stance after this release as the central bank signaled in its Tuesday’s policy statement no near-term policy move as inflation and growth remains below the target. However, we foresee that the Australian central bank might go for a rate hike by end of next year as inflation is expected to surge in the coming months supported by strong growth.
Following this release, the AUD/USD fell over 0.30% to $0.7579 and Australian bond yield declined more than 8 basis points to 2.515% by 04:30 GMT.