In Q1 2012, the Australian economy boosted by 4.3% (y/y) and 1.3% (q/q). According to the survey conducted by Dow Jones Newswires, analysts had expected the economy to boost only 3.4% and 0.7% correspondingly.
The mining, agricultural and financial industries were the biggest gainers. The country’s manufacturing industry showed much poorer performance. Nevertheless, this is a good sign because it used to shrink for 6 quarters in a row. The mentioned growth has become possible due to more substantial investments in Australia’s mining sector.
Australian households increased their spending by 1.6%, thus increasing the GDP by 0.9%. The country’s construction industry also contributed to the growth (1%). At the same time, a 1.3% export decline resulted in a 0.2% GDP decline.
The RBA has just shown an intention to support the economic growth: It was decided to cut the key interest rate down to 3.5%.
Forex
reports that the Australian Dollar keeps strengthening against his US counterpart within the scope of the recovery against the long-term downtrend. AUDUSD is currently forming wave 4 inside a big-scale downswing - wave А/В Weekly. A further rally will encounter resistance around 1.0027. A break and consolidation below 0.9580 will trigger wave 5 or А inside the Hound of the Baskervilles pattern by Elder/MF. If this is the case, 0.9559 and 0.9386 will become the closest major levels of support.
