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Strategies & Market Trends : John Pitera's Market Laboratory

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To: Mark Adams who wrote (3921)5/25/2001 1:10:04 PM
From: John Pitera  Read Replies (1) of 33421
 
The AUD is trying to regroup given the weakness in the Euro as well as the perceived potential stalling/topping
of the gold rally.

Highlights

Q1 GDP revised to 1.3% growth from 2.0% first reported. 3.2% GDP price deflator.
Key Factors

Personal spending of 2.9% in line with Q4, but most came from January post-holiday surge.
Personal spending composed of strong 12% durable goods (auto rebound), modest nondurable and weak service spending.
Far smaller decline in business investment than expected after Q4's first decline since 1992.
Inventory growth fell off very strongly, a contraction in levels. Leaves extremely strong 4.4% final sales.
9% import plunge left strong boost from net exports after eight quarters of steady drag.
Residential investment rose after back to back declines, non-res construction jumped 17%.
Government spending rose a strong 4.7%.
GDP deflator jumped 3.2% (from 2.0% in Q4), PCE price deflator rose 3.2%.
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