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″/]
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