AUD/USD has retrace its gains following the release of the Gross Domestic Product (GDP) and inflation figures. Economists at Commerzbank expect the Aussie to struggle against the greenback.

Australian data mix supports AUD only briefly

“The Australian data mix this morning illustrates: the RBA’s 325 bps in previous rate hikes are having an effect, but more is likely to come.”

“Q4 GDP was expanding less than in the previous quarter. High levels of inflation, in January they remained at 7.4% YoY, are affecting the buying behaviour of consumers. At the same time the result means that the RBA is likely to become even more restrictive to control inflation.”

“AUD was able to benefit very briefly but soon focus returned to the USD, with hardly any currency, including the Aussie, standing a chance against it at present.”