| Updated: September 12, 2025Profile of Australia’s dollar – major economic reports
This lesson will cover the following
- Gross Domestic Product
- Trade Balance
- Consumer Price Index
- Producer Price Index
- Employment Change
Major economic reports released by Australia
Gross domestic product
The GDP represents the total monetary value of all goods and services produced over a specific period in Australia, or, in other words, the size of its economy. It comprises expenditure made by the household, business and government sectors as well as net foreign purchases. Rapid economic growth is usually considered a conduit to inflation, while low or negative growth signals a weak economy or recession. The Gross Domestic Product report carries considerable weight for currency traders. Because it provides evidence of growth in a productive economy (or contraction in an unproductive one), traders view a higher growth rate as an indication that interest rates are likely to be raised.
Trade balance
The trade balance measures the difference in value between the country’s exports and imports during the reported period. It reflects net exports of goods and services, one of the components of the country’s Gross Domestic Product. Market participants tend to give higher priority to seasonally adjusted figures reported over three-month periods, because single-month data are considered less reliable. A narrowing trade deficit or an expanding trade surplus usually supports demand for the Australian dollar.
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Consumer Price Index (CPI)
The Consumer Price Index is based on a basket of goods and services bought and used by consumers on a daily basis. The CPI is used as a measure of inflation. The basket comprises goods and services that account for a large proportion of expenditure by metropolitan households. Basic necessities, housing, education, financial services, transport and healthcare are all included. The RBA usually adjusts monetary policy in response to the performance of this index.
Producer Price Index (PPI)
The Producer Price Index reflects changes in the prices of products sold by manufacturers during the relevant period. The PPI tracks almost every goods-producing industry in the Australian economy, including agriculture, electricity and natural gas, forestry, fisheries, manufacturing and mining. The PPI differs from the CPI, which measures price changes from the consumer’s perspective, as subsidies, taxes and distribution costs vary across industries. If producers must pay more for goods and services, they are likely to pass these higher costs on to the end consumer. The PPI is therefore considered a leading indicator of consumer inflation. Currency traders pay particular attention to the seasonally adjusted finished-goods PPI and its quarterly performance, as the Australian PPI is published once every quarter.
Employment change
This indicator reflects the number of employed people in the country. The employment change report is based on the Labour Force Survey, which the Australian Bureau of Statistics conducts monthly. The indicator can be interpreted differently depending on the economic context. Job creation is considered crucial for consumer spending, a key driver of the overall economy, especially when growth is still sluggish. Conversely, in a booming economy an exceptionally strong increase in employment may lead to excessive spending, which in turn can drive consumer inflation higher. In such circumstances, the Reserve Bank of Australia may need to consider raising interest rates.