The Australia GDP data has slowed the economy down taking the annual data to only 3.1%. Although the numbers beat expectations by .1% currency traders are not convinced that the AUDUSD will hold. RBA Governor Stevens speaks later in the day and will likely address that the fiscal instruments are appropriately set to allow for moderate growth but a weakening property market is something that must be managed in the interim.
Lowering interest rates is not on the cards and yesterdays economic outlook indicated that global markets are not looking interest hike with an highly unstable Russia and Middle East. Retail interest rates are lowering as the competition heats up in weakening property market in Australia.
Our expectations is that the AUDUSD rate is looking bearish ahead Glenn Stevens.