12 Dec 2014
AUD budget deficit to be larger than expected – TradeTheNews
FXStreet (Barcelona) - The TradeTheNews Team cites Australian Treasurer Hockey’s comments warning that the budget deficit will be larger than expected, blaming the larger than anticipated commodity price decline.
Key Quotes
“AUD/USD was little changed on China data release, trading at the top of its 40-pip range above $0.8270. Earlier in the session, local press speculated the govt will cuts its 2015 GDP target, having completed the Economic Work Council meeting. The extent of the cut will be unveiled at the next party plenum in March.“
“Australia mid-year economic and fiscal outlook (MYEFO) will be formally released on Monday, Dec 15th. Speaking ahead of that announcement, Treasurer Hockey warned that the budget deficit will be larger than expected and return to surplus take longer than expected. Hockey noted the underperformance was due to commodity price decline being larger than anticipated, even though fundamentally the economy is still strong and in a positive trajectory.”
Key Quotes
“AUD/USD was little changed on China data release, trading at the top of its 40-pip range above $0.8270. Earlier in the session, local press speculated the govt will cuts its 2015 GDP target, having completed the Economic Work Council meeting. The extent of the cut will be unveiled at the next party plenum in March.“
“Australia mid-year economic and fiscal outlook (MYEFO) will be formally released on Monday, Dec 15th. Speaking ahead of that announcement, Treasurer Hockey warned that the budget deficit will be larger than expected and return to surplus take longer than expected. Hockey noted the underperformance was due to commodity price decline being larger than anticipated, even though fundamentally the economy is still strong and in a positive trajectory.”