Australia Q1 GDP stronger than expected, supportive of AUD

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Australia’s first-quarter Gross Domestic Product data has been released as follows:

Aussie GDP

  • Australia Q1 real GDP +0.8 pct QoQ, seasonally adjusted,s/adj, (Reuters poll +0.5 pct).
    Australia Q1 real GDP +3.3 pct YoY, s/adj (Reuters poll +2.9 pct).
    Australia Q1 final consumption expenditure +1.9 pct, s/adj.
    Australia Q1 gross fixed capital expenditure +0.7 pct, s/adj.
    Australia Q1 chain price index +4.9 pct.

 A softer print in activity was anticipated given the disruptions associated with omicron and severe flooding in NSW and Queensland, analysts at Westpac explained in a note ahead of the data today. 

”Consumer spending and public demand were expected to add to growth, while business investment and housing should remain subdued.”

From a policy perspective, analysts at ANZ Bank said ”the most important number from today’s Q1 GDP report will be the average earnings measure of wages.”

They said in a note prior to the data that ”partial data suggest a sharp acceleration in annual growth to around 5%. If we’re right, this will keep speculation of a 40bp move at the June meeting very much alive.”

AUD/USD update

AUD/USD has been reluctant to rally on the knee jerk, but the data is solid and could be supportive for the Aussie

About Aussie GDP

The Gross Domestic Product released by the Australian Bureau of Statistics is a measure of the total value of all goods and services produced by Australia. The GDP is considered as a broad measure of the economic activity and health. A rising trend has a positive effect on the AUD, while a falling trend is seen as negative (or bearish) for the AUD.

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