Australian Dollar Boosted By GDP, Greenback and Yen The Weakest
Aussie has risen to trade as the firmest thanks to surprisingly strong Gross Domestic Product data. The GDP increased 1.0% qoq in the first quarter. Q4’s numbers were revised up to 0.5% qoq from 0.4% qoq. Meanwhile, the greenback and Japanese Yen are the softest. Rally in Treasuries eased.
Reserve Bank of Australia issued a rather dovish statement. It said that: “growth in exports accounted for half the growth in GDP, and reflected strength in exports of mining commodities.” Mining industry Gross Value Added rose 2.9%. Production of coal, iron ore and liquefied natural gas also increased. Private non-financial corporations profits were up 6.0%. Officials noted: “the rise in profits was consistent with the strong increase in mining exports coupled with a lift in the terms of trade this quarter.”
Steven Mnuchin (US Treasury Secretary) advised Donald Trump to exclude Canada from the steel and aluminum tariffs. But, his request was rejected. As of NAFTA negotiation, Francois-Philippe Champagne (Canada International Trade Minister) stated: “We want a trilateral agreement – we’ve always said this”, adding: “we know it works, we know it underpins a very integrated supply chain. So, when you talk about this issue you have to look at reality – the reality is that over the last 24 years we have built a very integrated supply chain, which has been good for (the) economy, good for consumers, good for workers on all sides. Ildefonso Guajardo (Mexico’s Economy Minister) claimed NAFTA “has to be a trilateral accord, given the conditions of integration in North America.” And, “it must be that way.
Today, Swiss will present Consumer Price Index, Eurozone will announce retail PMI, Canada will issue trade balance, building permits and Ivey PMIm, the US will publish trade balance and non-farm productivity.