According to the official data published by the Australian Bureau of Statistics (ABS) on Wednesday, Australia’s Gross Domestic Product (GDP) rose 0.4% in the second quarter of 2023, easing from 0.2% in the first quarter and under forecasts of 0.3%.

The annual second-quarter GDP expanded by 2.1%, compared with the 2.3% growth in Q1 while beating estimates of a 1.7% increase.

Additional details

Market reaction

AUD/USD is holding lower ground near the 0.6365 region, a little impressed by the above-forecasts Australian growth numbers. The pair is down 0.15% on the day, as of writing.

Why the Australian GDP data matters to traders?

The Australian Bureau of Statistics (ABS) releases the Gross Domestic Product (GDP) on a quarterly basis. It is published about 65 days after the quarter ends. The indicator is closely watched, as it paints an important picture for the economy. A strong labor market, rising wages and rising private capital expenditure data are critical for the country’s improved economic performance, which in turn impacts the Reserve Bank of Australia’s (RBA) monetary policy decision and the Australian dollar. Actual figures beating estimates is considered AUD bullish, as it could prompt the RBA to tighten its monetary policy.