Australia: Strongest year-over-year GDP pace since Q3 12 - BBH

Research Team at BBH, notes that the Australia's Q1 GDP expanded by 1.1% q/q and 3.1% y/y and the quarterly expansion was boosted by exports. 

Key Quotes

“The year-over-year pace is the strongest since Q3 12.  The Australian dollar has extended its recovery after reversing higher on Monday.  It made a low then near $0.7150 and today approached $0.7300.  It moved above its 20-day moving average (~$0.7275) for the first time since May 3's downside reversal. 

It has slipped back toward $0.7240 in the European morning, but the intraday technicals warn that the downside from here may be limited.  Although some observers continue to look for a rate cut (June 7), we are less sanguine.  Back-to-back cuts do not seem warranted and are typically associated with greater economic stress.”