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Strong GDP couldn’t help the AUD

Published September 6, 2018

Author: Dennis Li

Australian GDP reported a surprisingly robust number reaching a near 6-year high of 3.4% annual growth recording the 27th year without recession. Whilst the figures do reflect fundamentally strong conditions, there are worrying signs out yesterday primarily that household savings ratios are at their lowest level since before the GFC.

Th Aussie dollar enjoyed only a brief lift to 72.18 US cents post GDP before tumbling to a 27-month low of 71.42 US cents overnight with the broadly rising greenback and strains in emerging markets driving currency moves. The AUDEUR had a volatile journey overnight ranging between 0.6223 and 0.6168.

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