The GDP for the first quarter of 2012 in Australia came in 1.3%, beating forecast of 0.5%, and Q4 2011 reading of 0.4%, according to the latest report from the Austalian Bureau of Statistics (ABS). The year-over-year reading came in at 4.3%, while Q4 year-to-year was 3.6%.
This much-improved growth reading might be able to sooth recent concerns of slowing growth due to slowdown in mining and moderation in China's economy.
More data like this will convince the market that the rate cutting campaign might be put aside for now.
The market traded up the Australian Dollar in the immediate minutes after the strong data release at 9:30PM EDT. It has pushed above 0.98 to 0.9830 within 10 minutes.
The AUD/NZD for example rallied from 1.2870 to above 1.29.
Fan Yang CMT is the Chief Technical Strategist, trader, educator and a of the main contributors to FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.
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