We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
Oil - US Crude
Mixed
Wall Street
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bearish
GBP/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • (Asia AM) The #DowJones, #SP500 and #NASDAQ Composite may climb after my Wall Street index avoided a downside breakout. Donald Trump’s news conference on China cooled escalation woes - https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2020/05/31/Dow-Jones-SP-500-Nasdaq-Composite-Ready-for-More-Highs.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/KDrzpy6PFb
  • Preview of my piece previewing Europe/US ⬇️ https://t.co/hVYqYLVQaq
  • US-China tensions remain, #ECB stands ready to expand QE purchases, EU-UK trade talks in focus. Get your #equities market update from @JMcQueenFX here: https://t.co/hKLNJKqMoz https://t.co/h45Cngonhw
  • #Gold has a short-term bullish set-up that may play nicely with USD weakening. The longer and shorter-term path of least resistance remains higher. Get your $XAUUSD technical analysis from @PaulRobinsonFX here:https://t.co/6gt3F9LuGP https://t.co/CR4z6lul34
  • AiG Manufacturing Index (May): 41.6 vs 35.8 prior. Factory sector shrank for a second consecutive month, but at a slower pace than April. #AUDUSD
  • US equity futures pointed lower along with cycle-sensitive AUD and NZD while anti-risk #JPY and #USD are edging higher. Possible catalysts are protests in American cities combined with tension between the US and China over Hong Kong.
  • Reminder: Weekly Strategy Webinar tomorrow morning at 8:30am ET on DailyFX! https://t.co/lxd5fZnn4H
  • (Weekly Fundamental Outlook) The medium-term #gold outlook still seems favorable as the #Fed, ECB and more keep rates around 0. Immediate event risk ahead includes the RBA and BoC interest rate decisions, US jobs data and #Brexit talks #XAUUSD - https://www.dailyfx.com/forex/fundamental/forecast/weekly/chf/2020/05/30/Gold-Prices-Face-RBA-BoC-ECB-US-Jobs-Data-and-Brexit-Talks.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/m8sRNc4L5H
  • U.K. Eurozone Czech Poland Germany Italy France Spain Indonesia Hong Kong Singapore Japan Unemployment stats: US Eurozone
  • Hello there, traders! Heads up: we have got a data-packed week ahead of us. Here are the highlights: Central bank rate decisions: - BOC - ECB Markit PMI data out of: China US Vietnam Malaysia South Korea Philippines Thailand Taiwan India Turkey (continued⬇️)
Forex News: AUD/USD Edged Higher on Better Trade Report

Forex News: AUD/USD Edged Higher on Better Trade Report

2013-02-05 00:46:00
Robin Leung,
Share:

The Takeaway: Australia Trade Balance Report came in well above expectation -> Trade deficit may continue to narrow due to a stronger global demand -> AUD/USD rose

The AUD/USD edged higher on Australian Trade Balance that showed a narrowing trade deficit in December. The report posted a deficit of -427 million, increasing from a revised deficit of -2788 million in the prior reading, which came in well above expectation that set for a deficit of -800 billion. Exports increased by 2.6% in December versus a 1.3% in November while imports decreased by 6.2% versus an increase of 4.8% in November.

A narrowed trade deficit may signal a higher upside potential for Aussie as foreign demand increases. Moreover, the RBA index of commodity prices released on January 1 rose 2.6 percent on the preliminary estimates for January commodity prices; in particular, iron ore has exhibited the most increase while base metals and rural commodities have showed little change. Although there are concerns over China’s waning demand for commodities, economists at times may underestimate the power of economic resilience and multiplier effects in emerging countries like China.

In fact , China’s demand for iron ore and coal are likely to pick up strength after the Chinese Lunar New Year during the third week of February. In 2013, Chinese government has removed regulations on annual coal price negotiation between buyers and sellers, which implies that supplies are sufficient unless there are more natural disasters that were seen in Australia. More importantly, rise in coal prices may be limited. Therefore, aside from the yield advantage that the Aussie continues to offer, potential rising commodity prices and stronger global demand could further narrow the trade deficit and provide some support for the Aussie in the short term.

The AUD/USD rose 12 pips in the five minutes leading up to the announcement. At the time of writing, the AUD/USD is trading at 1.045.

AUD/USD 1-Minute Chart

Forex_News_AUDUSD_Edged_Higher_on_Better-than-Expected_Australian_Trade_Balance_Report_body_Picture_1.png, Forex News: AUD/USD Edged Higher on Better Trade Report

Chart Created by Robin Leung using Marketscope 2.0

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.