Australian Gross Domestic Product beat expectations as follows:
- The Australian economy rose 3.4% in seasonally adjusted chain volume measures.
- Real net national disposable income rose 1.7%.
- The terms of trade fell 5.1%.
- Household saving ratio decreased to 13.6% from 19.8%.
Full report
''Gross Domestic Product (GDP) rose 3.4% this quarter as NSW, Victoria and the ACT came out of extended lockdowns in October 2021. This rise followed a fall of 1.9% in the previous quarter. GDP in the December quarter 2021 was 3.4% above December 2019 pre-pandemic levels. The emergence of the Omicron variant over the second half of December 2021 did not have a material impact on activity this quarter.''
AUD/USD, meanwhile, is holding in a bullish territory near 0.7260.
About Aussie GDP
The Australian Bureau of Statistics (ABS) releases the Gross Domestic Product (GDP) on a quarterly basis. It is published about 65 days after the quarter ends. The indicator is closely watched, as it paints an important picture for the economy. A strong labor market, rising wages and rising private capital expenditure data are critical for the country’s improved economic performance, which in turn impacts the Reserve Bank of Australia’s (RBA) monetary policy decision and the Australian dollar. Actual figures beating estimates is considered AUD bullish, as it could prompt the RBA to tighten its monetary policy.