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Market Update

EncoreFX’s daily market updates are written by our experienced and professional dealing team.

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.

  • US President Trump told reporters that result of second round of trade talks with Canada will be known within this week while an agreement was not yet ready to be reached over the trade disputes with China.
  • The US trade deficit rose to a five-month high in July amid escalation of trade wars with its major trade partners.
  • The EU retail sales grew at a more moderate rate than expected in July as households spent less on clothing than previous year.
  • The Bank of Canada held interest rate steady on Wednesday as expected and confirmed more hikes would be needed to keep inflation on target.