Australia's economy managed to advance 0.7 percent in the last quarter of 2010 in spite floods and torrential rains that hit the northeast parts of the country.

The Bureau of Statistics said in Sydney today announced on a quarter basis, there was an adjustment of 0.1 percent, which keeps the country out of recession for three consecutive years as the annual gross domestic product is at 2.7 percent

In nominal terms, gross domestic production rose 1.2 percent quarter on quarter and is 8.8 percent higher annually.

The economic data, according to analysts are within their expectations. Australia & New Zealand Banking Group economic report released today said: "Today's result is unlikely to alter policy makers' broad view of the world. The overall outcome was in line with the RBA's (Reserve Bank of Australia) latest forecast."

Meantime, the economic data did not bode well for the Australian dollar, also known as the Aussie, however, skidded to $1.0100 as of 1:54 p.m. in Sydney from $1.0145 before the release of the economic data.

Analysts said in the near term, the Reserve Bank's decision to maintain interest rates at 4.75 percent will encourage some consumer confidence and spending that relatively went down in the last quarter of 2010.