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2016 GDP growth seen at +2.5% - Australian Federal Budget

It's government Budget time in Australia 3 May 2016

Not normally a market mover, like that in the UK, but I'll post up some more deets as it all adds to the back story in the wake of today's RBA rate cut by 0.25%.

  • GDP growth f/cast +3.0% through 2019/20
  • 2016/17 budget deficit f/cast A$37.1bln vs 33.7bln seen in Dec f/cast
  • 2016/17 inflation at 2%, 2017/18 2.25%
  • 2016/17 unemployment rate f/cast 5.5%
  • govt projects to return budget to balance by 2020/21*
  • govt committed to lowering deficit by cutting spending while keeping taxes low

Elections this year will be high on their optimistic outlook agenda.

Meanwhile S&P say they will look through budget details in coming weeks

  • rating currently AAA/Stable
  • improving budget balances important to rating (see above*)

Fitch says Aussie public finances remain consistent with AAA rating.

AUDUSD currently back in retreat at 0.7571, prompted by USD demand initially but now seeing some AUD selling on the crosses. AUDJPY testing 80.00 again as USDJPY rally stalls around 105.80.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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