AUD: Temporary GDP hammer blow?
The now dated Q3 Australian GDP has exerted downward pressure on the AUD (now ~$0.6415) with the already sluggish underlying growth picture undershooting analysts forecasts. This won’t surprise businesses at the coalface, particularly those in goods-producing and interest rate sensitive industries, with the GDP figures once again showing that higher mortgage rates and elevated prices are constraining private sector activity. The Australian economy expanded by 0.3% in Q3. As a result, annual growth decelerated to just 0.8%pa. Outside of the COVID lockdowns this is the slowest annual pace since the early-90’s recession. The detail in the national accounts can be...