Search ForexCrunch

The Australian economy grew by 0.6% in Q1 2013, slightly lower than a growth rate of 0.7% that was expected. The year-over-year growth rate stood on 2.5% instead of 2.7% predicted.

This small disappointed was joined more negative talk and resulted in a slide of the Aussie: the drop from around 0.9650 to 0.9570 was steady and constant.

GDP Data

  • Investment in machinery and equipment dropped by 6.9% and this provides more evidence of the “end of the mining boom”. However, exports continued growing: +1.1%.
  • Household spending rose by 0.6% or 2% annually – the slowest since 2009. Also domestic demand is weak: it squeezed by 0.3% in Q1 after hardly growing in Q3 and Q4 2012.
  • A big drop was seen in public spending: 15.3%. Will the government wake up and try to stimulate the economy before the elections?

AUD/USD Steady Decline

The 0.9580 line now turns into resistance once again. Support is found at 0.9527 – the new low seen after the breakout. For more levels, see the AUD/USD forecast and here is a live chart of the pair:

[do action=”tradingviews” pair=”AUDUSD” interval=”60″/]