AUD/JPY drops beneath 79.00 as Australia enters “per capita” recession
- AUD/JPY fell beneath 79.00 a couple of minutes earlier than press time and is at present buying and selling at session lows close to 78.90.
- Australia GDP report launched at 00:30 GMT confirmed the economic system entered “per capita” recession within the third quarter.
The AUD took hit after the info launched at 00:30 GMT confirmed the Australian economic system entered “per capita” recession.
Australian economic system expanded 0.2 % quarter-on-quarter within the fourth quarter, lacking the estimate of a 0.three % development. The annualized development charges additionally got here in beneath estimates.
Notably, the GDP report launched right this moment additionally confirmed the per capita GDP – which strips out the impact of inhabitants development – contracted 0.2 %, having dropped 0.1 % and 0.2 %, respectively, within the earlier quarters.
It basically implies that Australia’s economic system has entered per capital recession for the primary time since 2006. That can possible put stress on the RBA to stroll the speak – Governor Lowe put fee cuts again on the desk in early February, nonetheless, the financial coverage assertion launched yesterday was impartial.
Because of this, AUD/JPY dangers falling additional, having dropped greater than 30 pips to session lows close to 78.90 in the previous few minutes.