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AUD/USD to Two-Week High at 0.91 after GDP Beats Estimate

Australia’s dollar rose to a two-week high after data showed second-quarter gross domestic product grew at a faster pace than economists had predicted.

The Aussie added to gains from yesterday which came after the Reserve Bank of Australia left interest rates unchanged at a record low and omitted mention of further scope to ease policy. The nation’s three-year bond yield, which is influenced by RBA expectations, rose to its highest level since July 8.

“The Aussie has jumped up on the GDP news because the number was a little better than markets were anticipating,” said Besa Deda, the chief economist at St. George Bank Ltd. in Sydney. “The data is still supportive of our view that the RBA may need to do more, and we think that one more rate cut in November is likely.”

Bloomberg [1]

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