US Dollar Australian Dollar Exchange Rate Advances on Strong Q3 GDP Revision
Stronger-than-expected US economic growth in Q3 has helped the US Dollar Australian Dollar exchange rate to notch up mild gains.
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Mixed US Data Sees US Dollar Australian Dollar Exchange Rate Hold Minor Gains
The day’s slew of US data has been mixed, preventing the US Dollar from racking up any considerable gains, although the ‘Greenback’ remains in positive territory.
On the one hand, GDP figures for the third quarter were revised higher than expected in the finalised print. Expected to rise from earlier estimates of 3.2% growth to 3.3%, gross domestic product instead clocked in at 3.5%.
However, other key data was not so impressive. Durable goods orders declined -4.6% in November, while the latest initial jobless and continuing claims figures came in higher-than-expected at 275k and 2036k respectively.
The latest personal consumption figures also missed their forecasts, showing no growth on the month and 1.6% growth on the year; -0.1% below forecasts in both instances.
Dire Deficit Predictions from Key Australian Mining State Allows US Dollar Australian Dollar to Advance
News that key Australian mining state Western Australia – once called the country’s powerhouse – is facing worse-than-expected budget deficits this year has weakened the Australian Dollar.
This is not the first time this year that the local government has been forced to revise its expected spending figures higher; the latest prediction is for a record deficit of -AU$3.39 billion, despite rising iron ore prices saving the region AU$527 million.
Projections for payroll tax revenues in the region have been lowered by -AU$226 million, while income from stamp duty is expected to be -AU$135 million below earlier estimates. Forecasts for business investment now predict a decline of 28.2%, against earlier forecasts of a -19% decline.
The recent Australian GDP figures showed the economy declined more-than-expected in the third-quarter, so news that Western Australia’s outlook is worsening won’t help trader optimism to recover.
USD AUD Exchange Rate Forecast; Lack of Australian Data Could see US Dollar Dominating
There is no Australian data set for release in the coming hours, giving the US Dollar Australian Dollar exchange rate the chance to push even higher. The US data isn’t particularly impactful, consisting mainly of new home sales reports and finalised University of Michigan confidence scores, but with nothing to provide AUD support, it could still provide USD with a boost.
Interbank US Dollar Australian Dollar Exchange Rate
The interbank US Dollar Australian Dollar exchange rate was trending around 1.38 at the time of writing, while the Australian Dollar US Dollar exchange rate was trending around 0.72.