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When is the Australian GDP release and how could it affect the AUD/USD?

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When is the Australian GDP release and how could it affect the AUD/USD?

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New update 2025.09.03 08:30
When is the Australian GDP release and how could it affect the AUD/USD?

update 2025.09.03 08:30

Australian GDP Overview

Australia's Gross Domestic Product (GDP) growth productivity for the second quarter of 2025 is due early on Wednesday, at 01:30 GMT. Australian GDP is expected to rebound to 0.5% QoQ, a fair recovery from the previous quarter's 0.2%. Australian GDP growth has struggled to get off the ground after slumping to 0.1% QoQ in March of 2024.

How could Australian GDP impact AUD/USD?

The Australian Dollar (AUD) took a hard hit on Tuesday, falling one-half of one percent against the US Dollar (USD) amid broad-market safe haven flows. An upside surprise in Australian GDP could be enough to galvanize risk appetite during Wednesday's Antipodean market session, while a downside beat will confirm for many investors that ongoing tariff fallout from US President Donald Trump's trade war with everybody at once is reaching deeper into the Australian economy.

AUD/USD daily chart


Economic Indicator

Gross Domestic Product (QoQ)

The Gross Domestic Product (GDP), released by the Australian Bureau of Statistics on a quarterly basis, is a measure of the total value of all goods and services produced in Australia during a given period. The GDP is considered as the main measure of Australian economic activity. The QoQ reading compares economic activity in the reference quarter to the previous quarter. Generally, a rise in this indicator is bullish for the Australian Dollar (AUD), while a low reading is seen as bearish.

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Next release: Wed Sep 03, 2025 01:30

Frequency: Quarterly

Consensus: 0.5%

Previous: 0.2%

Source: Australian Bureau of Statistics

The Australian Bureau of Statistics (ABS) releases the Gross Domestic Product (GDP) on a quarterly basis. It is published about 65 days after the quarter ends. The indicator is closely watched, as it paints an important picture for the economy. A strong labor market, rising wages and rising private capital expenditure data are critical for the country's improved economic performance, which in turn impacts the Reserve Bank of Australia's (RBA) monetary policy decision and the Australian dollar. Actual figures beating estimates is considered AUD bullish, as it could prompt the RBA to tighten its monetary policy.

Australian Dollar FAQs

One of the most significant factors for the Australian Dollar (AUD) is the level of interest rates set by the Reserve Bank of Australia (RBA). Because Australia is a resource-rich country another key driver is the price of its biggest export, Iron Ore. The health of the Chinese economy, its largest trading partner, is a factor, as well as inflation in Australia, its growth rate and Trade Balance. Market sentiment - whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) - is also a factor, with risk-on positive for AUD.

The Reserve Bank of Australia (RBA) influences the Australian Dollar (AUD) by setting the level of interest rates that Australian banks can lend to each other. This influences the level of interest rates in the economy as a whole. The main goal of the RBA is to maintain a stable inflation rate of 2-3% by adjusting interest rates up or down. Relatively high interest rates compared to other major central banks support the AUD, and the opposite for relatively low. The RBA can also use quantitative easing and tightening to influence credit conditions, with the former AUD-negative and the latter AUD-positive.

China is Australia's largest trading partner so the health of the Chinese economy is a major influence on the value of the Australian Dollar (AUD). When the Chinese economy is doing well it purchases more raw materials, goods and services from Australia, lifting demand for the AUD, and pushing up its value. The opposite is the case when the Chinese economy is not growing as fast as expected. Positive or negative surprises in Chinese growth data, therefore, often have a direct impact on the Australian Dollar and its pairs.

Iron Ore is Australia's largest export, accounting for $118 billion a year according to data from 2021, with China as its primary destination. The price of Iron Ore, therefore, can be a driver of the Australian Dollar. Generally, if the price of Iron Ore rises, AUD also goes up, as aggregate demand for the currency increases. The opposite is the case if the price of Iron Ore falls. Higher Iron Ore prices also tend to result in a greater likelihood of a positive Trade Balance for Australia, which is also positive of the AUD.

The Trade Balance, which is the difference between what a country earns from its exports versus what it pays for its imports, is another factor that can influence the value of the Australian Dollar. If Australia produces highly sought after exports, then its currency will gain in value purely from the surplus demand created from foreign buyers seeking to purchase its exports versus what it spends to purchase imports. Therefore, a positive net Trade Balance strengthens the AUD, with the opposite effect if the Trade Balance is negative.


Date

Created

 : 2025.09.03

Update

Last updated

 : 2025.09.03

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