The good news for the Aussie Dollar is that on Thursday in Europe, AUD/USD broke Wednesday’s 0.7553 low by only 5 pips before subsequently rebounding. The bad news is that the rebound extended only as far as 0.7585 and heading in to the New York close it was back down once more at a fresh cycle low of 0.7550. Overnight in Asia it has been lower once more, albeit only modestly, and its streak of six consecutive daily declines matches its worst run since May 2015. This leaves the GBP/AUD cross within half a cent of making its highest level since the EU referendum almost 2 years ago.
According to data from the Australian Bureau of Statistics this week, for the first time on record, Sydney’s population grew by more than 100,000 people in one year. Sydney’s population hit 5.1 million at June 2017, an increase of 101,600 people (2 per cent) since June 2016. But it was Melbourne that recorded the largest - and fastest growth - of Australia’s capital cities in 2016-17, increasing by 125,400 (2.7 per cent) to reach 4.9 million. Together, Sydney, Melbourne and Brisbane accounted for over 70 per cent of Australia’s population growth in 2016-17. Darwin, Adelaide and Perth on the other hand experienced relatively low rates of population growth, each at 1 per cent or less.
In Melbourne, net overseas migration was the major contributor to population growth, adding 80,000 people in 2016-17 (64 per cent of total population change). Natural increase contributed 29 per cent, while net internal migration accounted for 7.3 per cent of population growth. Net overseas migration was also the major contributor to Sydney's population growth (84,700 people) although, unlike Melbourne, the Harbour City experienced a net internal migration loss (-18,100 people) in 2016-17, meaning more people left Sydney for other parts of Australia than arrived. Sydney lost most people to other parts of New South Wales (40,000 people) and Melbourne (14, 400). These fascinating numbers help explain both the vibrancy of the country and the challenges that lie ahead in terms of infrastructure to service the needs of these rapidly growing urban populations. The Australian Dollar opens this morning in Europe at USD0.7575 with GBP/AUD at 1.84.