| What a shocker! If you need a reason for why the Australian dollar and interest rates are likely to remain under pressure, then the third quarter growth data from Down Under is it. The Australian dollar was treated with extreme prejudice on Wednesday morning, with the currency tumbling more than half a U.S. cent to a fresh 4 ½ year low in the moments after headlines flashed the disappointing news that year-on-year growth of 2.7% had missed market expectations of 3.1% growth.
Worse still, nominal GDP contracted 0.1% in the quarter, the first decline since 2009. Welcome to life after the commodities boom. The waning of the massive investment in new mining and energy projects weighed heavily on the third quarter GDP numbers, so too moves by many miners to defer planned projects given the hammering of iron ore and coal prices...............................................Full Article: Source
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