Australian Dollar Gains on Higher GDP

The Australian dollar benefited today from the better than expected first quarter GDP growth as the Reserve Bank of Australia may start considering interest rate hikes again.

The gross domestic product grew 0.6 percent in the first quarter of 2008 in Australia, fourth quarter following 0.7 percent increase and surpassing the median experts' estimate value of 0.3 percent gain. In the year-to-year comparison GDP grew 3.6 percent in Q1.

Among the reason for the continued growth of the Australian economy, the market analysts outline the increased personal and government spending, as well as increase in the building sector. RBA Governor Glenn Stevens signaled yesterday that the interest rate may be raised soon if the economy does not slow growth rate.

AUD / USD had its biggest gain since May 16 - it went up from 0.9511 to 0.9580 as of 9:07 GMT with a daily maximum at 0.9598. AUD / JPY also rose today - it went up from 99.98 to 100.43 with a daily high at 100.67.