The Australian financial system grew by 0.3% within the September quarter 2024 and 0.8% year-over-year, displaying continued development however at a slower tempo than the anticipated 0.5% growth, in accordance with knowledge launched by the Australian Bureau of Statistics (ABS).

Key factors from the Q3 GDP report:

• GDP per capita fell 0.3%, marking the seventh consecutive quarterly decline
• Public funding rose 6.3%, reaching document ranges
• Family spending was flat (0.0%) following a 0.3% decline in Q2
• The family saving ratio elevated to three.2%
• Phrases of commerce fell 2.5%, declining for the third straight quarter

Hyperlink to Australia’s Q3 2024 GDP Report

Particulars revealed that public sector expenditure was the primary development driver this quarter, with each authorities consumption and funding contributing positively. Nevertheless, family spending remained subdued, with vitality invoice reduction rebates shifting expenditure from households to authorities accounts.

Australian greenback vs. Main Currencies: 5-min

Overlay of AUD vs. Main Currencies Chart by TradingView

The Australian greenback fell sharply throughout the board following the GDP launch, posting its largest losses towards the Canadian greenback (-0.70%) and U.S. greenback (-0.69%), whereas declining much less severely towards the New Zealand greenback (-0.32%).

The bearish response seemingly mirrored the continued weak point in GDP per capita and family spending, suggesting the RBA may have to think about a extra dovish stance in 2025. The modest 0.3% quarterly development, effectively under the financial system’s potential, added to considerations about Australia’s financial momentum heading into the brand new 12 months.

On the time of writing, sellers stay in charge of AUD worth motion, with the foreign money buying and selling close to session lows towards most counterparts as markets digest the implications of one other quarter of below-trend development.