As per the Australian National report, Gross Domestic Product (GDP) of Australia has rose 1.8% this quarter which reflected the continued easing of COVID-19 restrictions and the recovery in the labor market. The level of economic activity is 0.8% above December quarter 2019 pre-pandemic levels and has grown 1.1% in through the year terms.

Also a growth in private investment is noted which has rose 5.3% in March quarter to be 3.6% higher through the year, the first through the year rise since June quarter 2018. Both business and housing investment increased, supported by government initiatives and improved confidence. Business investment was driven by a 11.6% rise in machinery and equipment, the strongest increase since December quarter 2009.

Growth was spurred by a soaring demand for commodities around the world and spending by consumers and businesses.

Rising household spending, investment by businesses, and higher prices of iron ore and gas exports helped drive the expansion, according to the Australian Bureau of Statistics. The speedy recovery of the country has been helped by its ability to contain coronavirus outbreaks, which boosted consumer and business confidence.

The Reserve Bank of Australia kept its official cash rate at the all-time low of 0.1% for the sixth meeting in a row, as policy-makers said they would continue to monitor inflation and rises in wages and house prices.

On the other hand, Treasury Secretary Janet Yellen said that the President Joe Biden should push forward with his $4 trillion spending plans even if they trigger inflation that persists into next year and higher interest rates. The comments came after Friday’s slightly softer-than-expected US May employment numbers.

AUD/USD 4 Hour Chart:

Support: 0.7680 (S1), 0.7618 (S2), 0.7586 (S3).

Resistance: 0.7774 (R1), 0.7806 (R2), 0.7869 (R3).

Amidst the Australian economy showing recovery signs, Aussie seems to be stronger against greenback. We expect a bullish trend for AUD/USD.