The Australian economy grew by 0.5% in Q2, lower than 1.1% in Q1 but better than 0.4% expected. Year over year, we had a beat as well: 3.1% instead of 3% predicted and after 3.5% in Q1. On a yearly basis, we see that growth remains solid.
AUD/USD wobbled around the publication, but is eventually clawing its way back up towards the 0.93 level.
After the Aussie dollar dropped yesterday after the RBA decision and mostly due to the USD’s rally, it slipped below 0.9270 but balanced quite quickly. At the time of writing, the pair still trades under 0.93, but seems to have found a bottom.
Even if the greenback resumes its rises, the Australian dollar is a good footing to withstand the storm. We have seen greater weakness in the pound, the kiwi, the yen and also the euro to some extent.
Chinese data was OK: the official non-manufacturing PMI came out at 54.4 points, indicating OK growth in the services sector. The independent HSBC PMI for the same sector came out at a similar number: 54.1 points.
Here is how it looks on the chart:
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