AUSTRALIA INDICATORS

AUSTRALIAN ECONOMIC INDICATORS

Fast facts of the Australian economy
-About 80% of the GDP of Australia comes from the sector services such as insurance, financial services, banking, etc.
-The Australian Reserve Bank (RBA) is responsible for the monetary policy of the country. The main objectives of the RBA are: controlling inflation, stability of the exchange rate and low unemployment. Each month the RBA members gather to discuss possible changes in monetary policy.

-The AUD has a very close relationship (relation positive) with certain commodities, especially gold.
-Currently, between the major currencies, Australia has the highest interest rate at 7.25%, making this interesting pair to "carry trades".

Australia important economic indicators

Rate of interest
The RBA is the central bank of Australia and is responsible for announcing changes in the interest rate of the country. The RBA meets 9 times a year to discuss possible changes in monetary policy.
A rise in the interest rate usually done to increase demand for AUD, thus increasing its value.
A decline in the interest rate usually done to decrease the demand for AUD, thus increasing its value.
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Gross Domestic Product
As we have already discussed it, GDP measures the total output of goods and services of a country. This is a measure of the growth of the country. In periods of high inflation, growth can be a big problem for the Australian economy.
AUD tends to gain value in a number,
AUD tends to lose value in a bad number,
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Change in employment
This is the change in the employment of two specific periods (from one month to another). Usually, investors and operators follow this indicator as a measure of the health of the economy.
A good number is usually the AUD to appreciate
A bad number is usually the AUD to depreciate
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Consumer Price Index (CPI)
The ICC is the main element in the measurement of inflation. Basically, inflation is the change in the purchasing power of a currency. Extreme values of inflation are not good for any economy, usually central banks are running intermediate values.
A good number of inflation tends to appreciate the AUD
A bad inflation number tends to depreciate to the AUD
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Trade balance
Australia trade balance measures the difference between imports and exports with business partners. When this number is on the negative side, means that imports are larger than exports, on the other hand, if it is positive, exports are still larger than imports.
In a good number, the AUD tends to gain value against other currencies.
In a bad number, AUD tends to lose value against other currencies.
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