The AUD/USD pair is trading downwards on Wednesday; investors were disappointed by the Australian GDP report.
The Australian Dollar is retreating against the USD in the middle of the week. The current quote for the instrument is 0.7582.
The statistics published today by Australia turned out to be disappointing and made investors sell the Aussie. The country’s GDP in the third quarter 2017 expanded by 0.6% q/q after adding 0.9% q/q the quarter before and against the expected reading of +0.7% q/q. On YoY, the Australian economy expanded by 2.8%. It’s better that in the previous quarter (+1.8%), but worse than expected (+3.0%).
The components of the report showed that 17 out of 20 economy sectors improved. For example, private investment increased by 4.5%, machinery and equipment – by 1.9%. Household spending also rose, but very slowly – this area remains a problem for the Australian economy.
It is worthy of note that the Export’s contribution to the third quarter GDP was zero, although the numbers of mined and exported ore and coal were pretty high.
Details are important for the Aussie: households don’t spend despite the fact that they get income when the market conditions are positive. As long as the Reserve Bank of Australia along with the country’s government can’t find the reason of this, the economy will expand at a slower pace than they want it to.
