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AUD/USD has rallied around 10 pips on the inline data in  Gross Domestic Produce data, (GDP), which dominates the calendar for Asia today.  

Of late, we have seen a mixed series  of partial indicators such as the soft construction & inventories data wile, despite the trade wars, exports had surprised to the upside. The updated Bloomberg consensus was for  0.5% quarter (QoQ), 1.4% year (YoY) as displayed on the FXStreet calendar.  

The data arrived as follows:

  • QoQ Q2 arrived at 0.5% vs 0.5% and 0.4% prior revisd to 0.5%
  • YoY Q2 arrived at 1.4% vs 1.4%  and 1.8%.

As analysts at Westpac noted, in yesterday’s statement, “the RBA conceded H1 2019 growth “has been lower than earlier expected” but insisted that growth “is expected to strengthen gradually to be around trend over the next couple of years.”

About GDP

The Gross Domestic Product released by the  Australian Bureau of Statistics  is a measure of the total value of all goods and services produced by Australia. The GDP is considered as a broad measure of the economic activity and health. A rising trend has a positive effect on the AUD, while a falling trend is seen as negative (or bearish) for the AUD.