AUD/USD found some footing after Australian GDP came in at 0.7% q/q for the 2nd quarter against expectations of 0.4%, according to a Bloomberg survey. Annual GDP had some upward revisions and printed at 9.6% against 9.1% expected.
The market was surprised by the solid result as the second quarter GDP number was impacted by early Covid-19 Delta variant lockdowns. The largest economy of New South Wales (NSW) was in lockdown in June, but other states were yet to do so. The full impact of other lockdowns, particularly the additional Victorian ones, will not be fully exposed until the 3rd quarter data. The Q3 GDP will also be dependent on the easing of these restrictions as vaccinations rates are expected to move above the targeted 70% in October in some states.