Australian dollar surges on better-than-anticipated Q2 GDP report

Australian dollar surges on better-than-anticipated Q2 GDP report

On Wednesday, the Australian dollar grew reacting to data that disclosed surge in the Australian economy, which speeded up in the second quarter of this year.

The currency pair AUD/USD jumped by 0.2% hitting 0.7191. In general, the Australian economy managed to ascend by nearly 0.9% quarter-on-quarter versus the estimated surge rate of about 0.7%, as the Australian Bureau of Statistics informed.

During the quarter to the GDP surge net exports managed to contribute up to 0.1%, while the household final consumption expenditure jumped by about 0.7%, adding nearly 0.4% to GDP surge.

On a year-on-year basis, surge in the Australian economy speeded up to 3.4%, surpassing estimates of a 2.8% deceleration.

The currency pair USD/CNY headed south by 0.1% coming up with an outcome of 6.8385 because China’s key financial institution set the Yuan reference rate at about 6.8266 versus Tuesday's reading of 6.8183.

Moreover, gauging the greenback’s purchasing potential versus its key rivals, the USD index headed south by 0.05% trading at 95.32. What’s more, the index’s losses were mostly limited because market participants waited for further development in the US-China trade conflict.

US leader is generally expected to proceed with its hawkish stance. So a great number of market experts suggest that new trade levies are bound to be slapped in the nearer future. Financial markets will be shocked if Trump does nothing to make it real.

Additionally, emerging market currencies also attracted enough attention.

Besides this, Argentina’s inflation is highly anticipated to reach a mind-blowing figure of 40.3% by the end of 2018, which is higher than the 31.8% prediction in July. Argentina’s national currency is predicted to slump to 41.9 versus the greenback by the end of 2018. However, in July experts were assured that it would slump just to 30.5. Argentina’s peso has dived by 52% against the US counterpart this year.

 

 

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