AUD/USD is trading in a tight range around 0.6520. Australia Q2 real GDP growth beat expectations, BBH FX analysts report.
RBA easing bets trimmed after strong growth
"Real GDP increased 0.6% q/q (consensus: 0.5%) vs. 0.3% in Q1 (revised up from 0.2%) driven by household spending, government final consumption expenditure, and net exports. Public investment was the largest detractor from growth. RBA cash rate futures trimmed bets for 50bps of easing in the next 12 months."
"Regardless, Australia’s August job print, due September 18, will be a bigger driver of RBA rate expectations. The RBA flagged that the pace of decline in the cash rate will largely be driven by labor market conditions. The July labor force report showed solid full-time job gains and argues for a gradual easing path, anchoring AUD/USD within its multi-month 0.6400-0.6600 range".
