Australian Q1 GDP was in line with consensus at +0.3%q/q/1.7%y/y, but AUD rallied, as the market was braced for a much weaker, potentially negative (quarterly) print notes analyst at RBC Capital Markets.

Key Quotes

“Growth in the quarter was driven by inventories and government expenditure while consumption was modest and funded by a run-down in savings to 4.7%. Our economists believe the underlying growth pulse remains modest and stuck in sub-trend territory.”