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.