• About Us
  • Authors
  • Currency Charts
  • Live Exchange Rates
  • Contact Us

Exchange Rate Forecast

Exchange rate forecasts and foreign currency news

  • British Sterling
  • Euro
  • US Dollar
  • Australian Dollar
  • Canadian Dollar
  • Brexit News
You are here: Home / Australian Dollar / Gross Domestic Product a concern for the Australian economy

Gross Domestic Product a concern for the Australian economy

December 6, 2017 by Lewis Edmonds

Gross Domestic Product a concern for the Australian economy

The Australian Dollar has been weakening for some time, with a number of factors ultimately creating a perfect storm for those looking to buy Aussie Dollars.

For the first half of the year, the Australian Dollar was one of the best performing currencies. Interest rate hikes domestically followed by a lack of faith in the Trump administration meant that investors were ready to view the Australian Dollar differently. Most of this strength appeared to be related to a lack of appetite for the US dollar due to its low interest rates. Now, as we prepare to enter 2018, the tables have turned and the United States are now preparing themselves for a third and final rate hike of 2017, removing the illustrious charm of the AU Dollar and hurting its value.

The release of Gross Domestic Product (GDP) figures this morning did little to help the Australian Dollar. Most analysts were expecting the Australian economy to have grown by 0.8% for the third quarter (up to September) however, the Australian economy only grew by 0.6%, a clear miss. Annual growth had only been recorded at 2.8% compared to the 3.0% expected. Earlier this week the Reserve Bank of Australia (RBA) decided to hold interest rates at 1.5%, citing a slower Australian economy which is likely to be offset by global headwinds from America and the UK, however they gave investors a slight glimmer of home by adding that the Australian economy may be ready to return to its high interest rate levels by March 2019.

The latest set of Gross Domestic Products would have done little to support this view, however a bullish Reserve Bank of Australia will now be keenly watching inflation figures and wage growth to see if they can raise interest rates before the March 2019 deadline set.

Filed Under: Australian Dollar Tagged With: Australian interest rate, GBPAUD, Gross Domestic Product (GDP), Reserve Bank of Australia

The information on this website is provided for information purposes only. It does not constitute advice to any person on any matter. Every reasonable effort is made to ensure that the information is accurate and complete but we assume no responsibility for and offer no warranty with regard to the same.

About Lewis Edmonds

When he is not offering insights into the what is happening on the currency markets Lewis manages key relationships for an authorised payment institution in the UK.

Recent Posts

  • Sterling finds support but unlikely to make any significant impact in the coming days May 9, 2018
  • US Dollar hits 5 month high against Sterling May 2, 2018
  • Sterling exchange rates at the mercy of political developments May 1, 2018
  • Pound weakens as political uncertainty once again raises its head May 1, 2018
  • Will Mario Draghi’s speech impact GBP/EUR? April 26, 2018

Live Exchange Rates

Archives




Copyright © 2021 — Currency.co.uk • All rights reserved. • Exchange Rate Forecasts • Privacy Policy •

We use cookies to ensure that we give you the best experience on our website. By using this site you agree to receiving cookies.I agreeRead Privacy Policy