Australian Q2 GDP Exceeds Forecasts, Boosting Australian Dollar
| Pair | Now | Since publish |
|---|---|---|
| AUDUSD | — | — |
- Australia Q2 GDP 0.4% QoQ, 2.1% YoY, beat forecasts.
- Strong Australia GDP lifts AUD, RBA hike odds to 57%.
- AUD/USD trades above 0.7150 on positive economic data.
Australia’s Gross Domestic Product (GDP) expanded by 0.4% quarter-on-quarter in the second quarter of 2026, surpassing market expectations of 0.3% and accelerating from the 0.3% growth recorded in the first quarter. Annually, the economy grew by 2.1%, also exceeding the 1.8% consensus, despite slowing from 2.5% in the prior quarter. This stronger-than-anticipated economic performance, reported on Wednesday, provided immediate support for the Australian Dollar (AUD). The AUD/USD pair reacted by gaining ground, trading around 0.7150-0.7151 during Asian hours. The robust GDP figures may offer the Reserve Bank of Australia (RBA) additional flexibility to pursue its policy tightening objectives aimed at managing inflation.
Australia’s Gross Domestic Product (GDP) for the second quarter grew by 0.4 percent quarter-on-quarter, improving from 0.3 percent in the prior quarter, and expanded by 2.1 percent year-on-year, exceeding the forecast of 1.8 percent. This annual growth remains above the Reserve Bank of Australia’s (RBA) estimated 2 percent non-inflationary speed limit, with underlying trimmed mean inflation at 3.6 percent. The stronger-than-expected data has increased market pricing for a September RBA interest rate hike to 57 percent, up from 48 percent previously. Following the release, the AUD/USD pair traded above 0.7150. Growth was primarily driven by private demand and mining exports.