The Australian Dollar has declined sharply in today’s early trades due to the economic growth data missing the estimated data for the current year.
In further details, the Aussie Dollar plunged from 76.13 US cents to 75.84 US. The economy was estimated to rise by 0.7 per cent in the said quarter and 3.0 per cent over the 12 months to September which disappointed since such only indicated a 2.8% result for the year.
Treasurer Scott Morrison told reports that the figures quantified “solid” economic growth, on the other hand, with growth quickening from 1.9 per cent to 2.8 per cent through the year.
“This is above the OECD average and puts Australia back up towards the top of the pack for major advanced economies around the world,” Morrison stated.
Household consumption numbers likewise have shown that the Australians were conserving more than they had been in previous months, with the household saving ratio climbing by 0.2 per cent since the June quarter.
However, Growth in household spending is at this moment at its nethermost percentage ever since the March quarter in 2005. Aussies were reportedly reducing their spending on household furnishings and equipment, hotels, cafes and restaurants, clothing and footwear and purchasing new cars.
In the meantime, spending on electricity, gas and other fuels has surged by 11.5 per cent as the cigarettes and tobacco added 11.1 per cent.
Morrison added that the said data weren’t astonishing provided that the cost of living weights on fundamentals that Australians were feeling and had been feeling for some time. He also emphasized on the robust jobs growth as one of the most constructive signs in the economic records.
“This government’s strategy has supported jobs by driving investment that in the September quarter created more than 1000 jobs every day,” he stated.
The Australian Dollar’s trades against the US Dollar were last seen at 0.7580, a considerable decline from the preceding trade. At the time of writing, the pair is still being dominated by bears which may not upturn soon.
The Coppock curve of the stock however, was seen surging but it barely surpassed the positive region. At-0.45, a sell would still be advised considering the report above.
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