Trade Desk Thoughts - Australia GDP

Australia GDP Actual 0.3%, Expected 0.4%, Previous 0.6%

Release Explanation: The Gross Domestic Product is a comprehensive measure of Australia’s overall production and consumption of goods and services. GDP serves as one of the primary measures of overall economic well-being. GDP announcements generally conform to expectations as the number comes out after most Australian production figures that lead to overall GDP have already been released.

Trade Desk Thoughts: On the expenditure side, the growth (in seasonally adjusted volume terms) over the past four quarters was driven by household final consumption expenditure which contributed 1.7 percentage points to GDP growth, machinery and equipment private investment with 1.2 percentage points, and exports of goods and services for 1.2 percentage points. Offsetting the growth during the past four quarters was a strong rise in imports of goods and services which detracted 3.0 percentage points.

Forex Technical Reaction: The Australian dollar is weakening from the lower than expected GDP numbers.

Written by TheLFB Trade Team, © 2007-2008 LFB Services, LLC. All rights reserved. http://www.TheLFB-Forex.com

TheLFB Risk Disclaimer can be found at http://www.thelfb-forex.com/content.aspx?id=174.

The Copying, Broadcast, Republication or Redistribution of TheLFB Content is Expressly Prohibited Without the Prior Written Consent of LFB Services, LLC.