Australian Economy Beats Expectations in Q2, Paving Way for Further Rate Hikes

Australia's GDP growth beat expectations in Q2, rising 0.4% quarter on quarter. This is above the Reuters poll estimate of 0.3% and up from 0.3% growth in Q1.

The annual growth figure remains at 2.1%, comfortably ahead of the 1.8% forecast but down from 2.5% previously.

Markets responded quickly to the beat, lifting the implied probability of a fourth RBA rate hike at its September meeting to 57% from 48% before the data.

The Australian dollar firmed modestly on the release, with AUD/USD trading around 0.7150 to 0.7151 in the aftermath.