The Bureau of Statistic in Australia released their GDP data on Wednesday. That was actually a data which showed an increase by 3.3 percent for a yearly Period. It was for the 1st quarter.
In fact, that was slowing down from the previous period. However, this number was beyond the expectations owned by most economist or experts. The expected for 2.9% raise only.
In a quarter and over quarter basic, that GDP in Australia increased by 0.8%. It was slumped significantly than a 3.6% raise in a previous quarter period, but that was above the experts forecast.
It is because they just hoped for 0.5% raise only. The Australia’s economic was always get a support the by the solid domestic demands in the market. That was for the first quarter of this year.
Some Factors Disturb the Domestic Demands
A strong support from the domestic demand can be seen from the household consumption. This sector gave up to 0.8% from total product of gross domestic in that place.
However, A positive story for that domestic demand must be disturbed by several obstacles. Those are like the bad weathers and abundant stocks of import products seen in the market nowadays.
Thi condition is able to slow down the GDP growth speed in Australia. This situation triggers many experts to give their opinion and analysts. Most of them believed that the economy there will survive.
In the future, all the things can be better. That is strongly related the way to face a real income decline and also interest rate hike. This can be a great support for the overall situation ahead.
A Solid GDP will Increase the Confident
Now the obstacles are fading. That is why; most people predicted that economy will increase up to 1.5% in the next quarter. Further more, a solid GDP may push the confidence of RBA policies.
It is especially related to do a rate hike again in a meeting that will be held in June. There is a prediction made by most market participants. Their prediction is 0.6% level for a rate hike position.
That is for the next month moment. The good thing is that a more optimistic view is estimating that the interest Rate can reach 2.5% at the end of this year or in 2022 which is quite normal.
Meanwhile, AUD / USD Pair Is Stable
Elsewhere, the AUD / USD is so stable, especially in it’s high point. It is occured after the Australia’s GDP data was announced where people could see that it showed a quite impressive result.
For your information, AUD / USD was around the point of 0.7190. It means that this pair was 0.25% stronger for a daily type. There are several things support that situation.
In some latest trade sessions, the Australian dollar was profited by an expectation of interest rate increase delay made by the Fed. However, everything could be different in a bliss.
Elsewhere , New Zealand seems has a solid domestic condition too. It is caused by a strong employment market, healthy Household condition, and a continuous fiscal support from the government.
The Tourism Sector is also Recovered
New Zealand is one of the countries which has a less COVID-19 case right now. That opens a chance for their tourism sector and it’s recovery. There is a thing is coming now in this case.
New Zealand and it’s rbnz is still watching any foreign risks amidst the great domestic fundamental situation. That is like the uncertainty of global economy.
Some inflation jumps happened in Many countries are also a concern needs to aware. However, some parties thought that the actions and decisions taken by that institution right now is right.
However, an expert said that maybe they are unable to raise the Rate too high in the future. It comes with a risk of recession, so that RBNZ may stop at the 3% level.
