The Aussie dollar has continued its winning streak overnight. It’s been bid higher on the back of yet more positive economic data, this time by way of better than expected Australian GDP data. Q1 GDP q/q printed at +1.0% vs. forecasts for 0.9%. AUD/USD gapped 30-40 points on the news but has since steadied itself ahead of any break above the 77 US cent mark.
As widely expected, the RBA maintained its current monetary policy stance at yesterday’s meeting keeping the cash rate on hold at 1.5% for the 20th consecutive meeting. While highlighting that recent Australian data has been mainly in line with their forecasts for growth to pick up above 3% in 2018 and 2019, they remain cautious on uncertain areas of the economy, especially consumer spending, low wage growth and inflation. With no substantive changes in tone evident in the post-meeting statement, data on unemployment, wages, inflation and the housing market will remain key for the policy outlook in the near term.
There’s more Aussie data on the way later tonight too, by way of Trade Balance. If this data shows a beat and if risk sentiment continues to improve it might see AUD/USD push through that key .77 level.