The Australian dollar fell today after economic data revealed that Australia’s economy contracted unexpectedly in the third quarter of this year.
Australia’s gross domestic product declined 0.5% (seasonally adjusted) in the September quarter of 2016 from the previous three months. The actual reading was far worse than the increase by 0.2% predicted by analysts. It is interesting to note that the Reserve Bank of Australia expected slower growth (though not necessarily a decline), saying in yesterday’s policy statement:
Some slowing in the year-ended growth rate is likely, before it picks up again.
AUD/USD fell from 0.7460 to 0.7450 as of 24:13 today, reaching the low of 0.7416. EUR/AUD was up from 1.4360 to 1.4399, and its daily high was at 1.4446.
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