According to Treasurer Wayne Swan, Australia's Q1 economic growth is likely to have reduced more than 1 percent from the previous quarter.

GDP report will be released tonight at 9:30pm EST with expectations of -.3% from a positive .7% in the previous quarter.

The GDP report will show a dramatic hit as a result from the floods and a cyclone in the Queensland state.

Swan also said that the earthquake and tsunami on March 11 in Japan will dampen growth as well. Japan is Australia's second biggest trading partner after China.

Growth is expected to quickly accelerate in the second quarter as the flood affected heavyweight coal sector returns to normal.

The total economic cost of the disasters is likely to be about A$9 billion ($9,6 billion), Swan said.

Australia's current interest rate is at 4.75%, the highest amongst G-7 currencies.  As a result of this report, it is highly unlikely that the central bank will raise rates at the next scheduled meeting on June 7. However after June 7 RBA, Reserve Bank of Australia, will look past through the disasters impact on production and prices and focus on the medium-term outlook in setting rates.

On the day AUD/USD is trading down 45 pips at the lows, 1.0645. 

1.0621 is the weekly pivot support level which should be hit when the GDP report comes out tonight.  But be careful for any positive news for Greece, which will play a positive outcome for risk, AUD/USD.