Australia’s economy picked up pace last quarter as surging resource exports and a revival in consumption offset weakness in business spending — a sign it was weathering a slowdown in a once-in-a-century mining investment boom.
The local dollar hopped higher after growth accelerated to 2.8 percent in the fourth quarter, up from 2.3 percent the previous quarter and the fastest pace in a year. It was also a step closer to the usual pace expected for a country that has not suffered a recession in 22 years.
“Better than expected — all that fuss about nothing. The Australian economy is still motoring along and even a little bit stronger than many had feared,” said Shane Oliver, head of investment strategy at AMP Capital Investors.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.