Business Inventories Q1 +1.3%, a solid beat
- expected 0.7% q/q, prior -1.7%
Gross Company Profits Q1 -2.5%, a miss
- expected -0.6%, prior +7.4%
Current Account Balance SA Q1 -4.9% … shockingly bad compared to the surplus expected
- expected AUD5.1bn, prior AUD11.8bn
Net Exports Contribution Q1 -0.9%, a miss, and a big chunk subtracted from GDP
- expected -0.6%, prior +0.6%
Public sector demand will add 0.2% to Q1 GDP
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AUD/USD is falling a little on the data. Misses all over the place, the exception being growing inventories … which while a contribution to growth is not a ‘good’ contribution to the extent it indicates stockpiling of goods rather than selling them due to weak demand (if its stockpiling due to an expected surge in demand ahead it’s a different story, but that is unlikely to be the case in Australia right now).
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For Wednesday, preview
- Australia Q1 GDP report due Wednesday, expected to remain very weak
This article was written by Eamonn Sheridan at www.forexlive.com.
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