Australian GDP

The Pound to Australian Dollar exchange rate remained near three-month highs in mid-week trade after local data queried elevated market-implied expectations for the Reserve Bank of Australia (RBA) cash rate, which could yet stoke further political controversy over the pathway of borrowing costs.

The Australian Dollar outperformed in the mid-week session but central bank policy expectations on boths sides of the AUD/USD equation could soon constrain the antipodean currency, which is also trading an elevated correlation with fragile stock markets, according to Westpac analysis. 

The Australian Dollar was wobbled on Wednesday after the full cost of the coronavirus containment effort pushed Australia into its first recession for decades and as the U.S. Dollar rebounded following a hat-trick of losses that pushed it to new two-year lows.

The Australian Dollar collapsed into the Wednesday session after official data showed the economy slowing sharply late last year as consumers came close to going on strike, which could mean a 2019 Reserve Bank of Australia (RBA) rate cut is all but a done deal.

The Australian Dollar retreated from multi-month highs Wednesday as traders began betting a Reserve Bank of Australia interest rate cut could now be on the way following disappointing third-quarter growth data. 

The Australian Dollar fell broadly Wednesday even after official data showed the economy growing at its fastest pace for nearly six years during the second-qaurter, as continued financial instability in emerging market economies and a "risk-off" mood in markets overshadowed the better domestic newsflow for investors.