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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

AUD: Australian economy sees little progress in Q3

Australia's economy barely grew in the third quarter with gross domestic product rising 0.2% quarter-on-quarter. However, it fell short of the 0.4% forecasts.

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Meanwhile, annual GDP growth stood at 2.1%, little changed from the previous quarter, the data from the Australian Bureau of Statistics showed on Wednesday.

(AI Video Transcript)

Australian economy

Australia's economy had slower growth than expected in the third quarter, with the gross doemstic product (GDP) only rising by 0.2% compared to the expected 0.4%. This is concerning because it is the eighth consecutive quarter of growth, but it is the slowest rate in a year. The annual GDP growth remained at 2.1%, showing little change from the previous quarter. The problem is that household spending has been disappointing, with no growth for the quarter and barely any growth for the last four quarters. This is the worst stretch since the global financial crisis.

The Australian Bureau of Statistics

The Australian Bureau of Statistics released this information, and it shows that the Reserve Bank of Australia's decision to tighten its monetary policy is having a negative impact. This slowdown was expected because of the tightening, and the current data supports the argument against further tightening by the bank.

The Australian dollar

Now, let's take a look at the Forex markets. The AUD had a slight increase of 0.52% against the US dollar that day. This suggests that despite the sluggish economic growth, some people still have positive feelings towards the Australian dollar. To put all of this into simpler terms, Australia's economy didn't grow as much as everyone hoped it would. People aren't spending as much money as they used to, and this is causing some problems.

The government tried to fix this by making some changes to the way they handle money, but it hasn't worked out as well as they thought. However, there are still some people who believe in the Australian dollar and think it will do well in the future.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

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