FX.co ★ Australia 10-Year Yield Climbs After Upbeat GDP Data

Australia's 10-year government bond yield has increased to 4.42%, marking its highest level in a month and a half. This rise comes as traders respond to GDP data that exceeded expectations. In the second quarter, the economy grew by 1.8% year-on-year, the swiftest rate in nearly two years, outpacing the anticipated 1.6% and accelerating from a 1.3% increase in the first quarter. On a quarterly basis, GDP saw a 0.6% rise, surpassing both the forecasted 0.5% and the previous quarter's 0.3% growth. This growth was mainly fueled by robust household consumption, indicating strong domestic demand. As a result, there is a prevailing belief that the Reserve Bank of Australia will maintain its current cash rate at its upcoming meeting. To date, the central bank has pursued a cautious strategy concerning policy easing, implementing cuts only in February, May, and August. All eyes are now on RBA Governor Michele Bullock’s upcoming address on technology and the future of central banking, where investors will be keenly watching for any insights into future monetary policy directions.