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Forex Trading: How a GDP Announcement Can Boost aCurrency

Forex Trading: how a GDP Announcement can Boost a Currency

The Australian GDP announcement for the second quarter of 2012 showed that the Australian economy grew way more than expected. The economy grew 1.3%, compared to official estimates of a 0.5% growth. when a month of bearish economic news for Australia and within the wake of more rate cuts, such a result came as welcome news for the state and sparked activity in forex mercantilism.


The Australian dollar (AUD) rallied in several of its denominated currency pairs, showing notably robust gains against the North American nation greenback (USD).
The AUD has staged a recovery in forex mercantilism ever since the unexpected half-point rate cut made by the RBA on day. The encouraging GDP figures account for the last spike seen within the graph on top of, showing a strengthening AUD despite the RBA cutting the speed by an extra quarter-point at the beginning of June.

Fittingly for forex mercantilism and currency pairs, there area unit invariably 2 sides to every coin. just as the AUD reinforced on the rear of the GDP announcement, the North American nationD has nearly at the same time weakened when economic information free by the US Bureau of Labour. North American nation non-farm payroll figures, a key economic indicator for the country free on June 1, showed growth within the employment sector that was far below national estimates. What this has served to try and do is strengthen the necessitate another spherical of quantitative easing, that within the short term would devalue the USD due to its inflationary impact. Such a move may spark more movement in forex mercantilism against the USD, and possibly towards the inhabitant.

It is important to check how a GDP announcement and other economic news can influence a currency combine. you'll keep track of all the newest forex mercantilism developments with immune globulin Markets. they supply an ardent forex focus, that keeps track of all the recent movement within the major currency pairs, still as an extensive collection of study and frequent market updates. you'll realize the forex focus by clicking this link.

The on top of information mustn't be construed as investment advice. Please consider the merchandise disclosure Statement out there from immune globulin Markets. CFD mercantilism can result in losses that exceed your initial deposit. additionally, you do not own or have any interest within the underlying quality.

Thomas Roberts, money writer, IG Markets