Back
4 Mar 2015
Asia Recap: Aussie stuck in range post Aus GDP
FXStreet (Bali) - The Australian Dollar traded in a semi-firmer tone in Asia, bouncing off day lows on an slightly lower Australian Q4 GDP print, giving back most of its Asian gains as we head into Europe, with the Yen mostly weaker.
AUD/USD saw a withdraw of liquidity towards 0.78 support before spiking higher to 0.7839 session high after the Australian Q4 GDP print of 0.5%, with the market still expecting further RBA rate cuts in upcoming meetings.
Looking at the Aus GDP details, as reported by the ABS: "In trend terms, GDP increased 0.4% in the December quarter 2014. Gross value added per hour worked in the market sector grew 0.1% and the Terms of trade fell 1.9%. In seasonally adjusted terms, GDP increased by 0.5% in the December quarter. The Terms of trade decreased 1.7%, and Real gross domestic income increased 0.2%."
The Capital Economics Team paints a gloomy picture for the Australian economic growth going forward, noting that "Australia’s economy picked up by less than expected in the fourth quarter, and worse is likely to be ahead, given that the effects of a significant deterioration in the country’s terms of trade are only just beginning to be felt. We expect growth to slow much more sharply than most analysts are predicting in 2015."
USD/JPY traded in a bullish tone since the Tokyo open, with a retest of 119.50 mid round number support acting as a catapult launching the rate over 25/30 pips higher heading into Europe, presently at 119.75/80. The Nikkei 225 was down 0.5%, but managed to pare early losses after tracking the SP500 lower.
In other fundamental news, Federal Reserve's Yellen crossed the wires, talking about bank regulation and supervision to the Citizens Budget Commission's Annual Awards Dinner, although she made no references on monetary policies.
AUD/USD saw a withdraw of liquidity towards 0.78 support before spiking higher to 0.7839 session high after the Australian Q4 GDP print of 0.5%, with the market still expecting further RBA rate cuts in upcoming meetings.
Looking at the Aus GDP details, as reported by the ABS: "In trend terms, GDP increased 0.4% in the December quarter 2014. Gross value added per hour worked in the market sector grew 0.1% and the Terms of trade fell 1.9%. In seasonally adjusted terms, GDP increased by 0.5% in the December quarter. The Terms of trade decreased 1.7%, and Real gross domestic income increased 0.2%."
The Capital Economics Team paints a gloomy picture for the Australian economic growth going forward, noting that "Australia’s economy picked up by less than expected in the fourth quarter, and worse is likely to be ahead, given that the effects of a significant deterioration in the country’s terms of trade are only just beginning to be felt. We expect growth to slow much more sharply than most analysts are predicting in 2015."
USD/JPY traded in a bullish tone since the Tokyo open, with a retest of 119.50 mid round number support acting as a catapult launching the rate over 25/30 pips higher heading into Europe, presently at 119.75/80. The Nikkei 225 was down 0.5%, but managed to pare early losses after tracking the SP500 lower.
In other fundamental news, Federal Reserve's Yellen crossed the wires, talking about bank regulation and supervision to the Citizens Budget Commission's Annual Awards Dinner, although she made no references on monetary policies.