Analysts have said that today’s current account deficit widening to A$16.18 bln in Q3 from A$13.133 bln in Q2, may likely lead to a lower forecast for economic growth. The deficit has almost tripled from the first qurater, reflecting a sharp drop in prices for exports such as coal and iron ore. The Australian Bureau of Statistics has said that the weak trade data will shave 1.8% points of GDP in Q3. CBA’s chief economist, Michael Blythe, now expects the Australian economy to grow 0.3% in Q3, lowered from 0.7% growth. Q3 GDP to be released Dec 16th.
The AUDUSD has been relatively quiet today, trading within a 9120-60 range. Intraday buyers at 9120 have protected the downside but AUDJPY selling on top has limited any further rise towards 92c. This current account data may play a part when Europe comes in.
Personally Im still a seller on rallies like I have been for the past 2 weeks. Look to sell 9160-80 for a move to 8940/50.