Daily Morning Report 03/06/2015

Daily Morning Report 03/06/2015

The Australian dollar rose to one-week highs against its U.S. counterpart today, after data showed that Australia’s economy grew at a faster rate than expected in the first quarter, while demand for the greenback continued to cool. In a report, the Australian Bureau of Statistics said gross domestic product rose 0.9% in the first quarter, beating expectations for a growth rate of 0.7% and after a 0.5% rise in the last three months of 2014. Year-on-year, Australia’s GDP rose 2.3% in the three months to March, compared to expectations for an increase of 2.1%, following a 2.5% growth rate in the last quarter of 2014.
Meanwhile, demand for the US Dollar remained under pressure after the U.S. Commerce Department said on Tuesday that factory orders fell 0.4% in April, confounding expectations for a 0.2% increase. On a year-over-year basis, factory orders dropped 6.4%, the sixth straight monthly decline. The unexpectedly weak data sparked fresh fears over the outlook for second-quarter growth after data last month showed that the U.S. economy contracted 0.2% in the first quarter.
Elsewhere, the Aussie was also higher against the euro
Later in the day, the U.S. is to release reports on the trade balance and service sector activity.

Leave a Reply

Your email address will not be published.