The Australian Dollar failed to rise last week on the ostensibly quite bullish confirmation that its home economy had avoided technical recession and returned to growth in the final quarter of 2016.
There were two main reasons for this, one of which will probably bear quite heavily on the coming week’s trade too. So, let’s deal with the other reason first. While Australia’s third-quarter growth contraction was a shock, the economic data investors have seen since made it quite clear that it was also something of an aberration.
Indeed, even the Reserve Bank of Australia had been wont to say as much. So last week’s news of GDP growth was widely expected and confirmation didn’t bring out many more Aussie buyers.