News & Analysis at your fingertips.

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. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • Retail trading platform Robinhood announces hire of new Chief Compliance Officer amid regulatory scrutiny
  • There is a ridiculous number of scheduled Fed speeches on the docket next week. Powell specifically will be speaking multiple times including at an ECB hosted forum on central banking (which also has a panel with Fed, ECB, BOE and BOJ heads)
  • USD Ascending Triangle, Bullish for Q4 - #DXY chart on @TradingView https://t.co/iCnRSo9N4V
  • Credit rating agency Standard & Poor's is due to give its sovereign credit rating update on Germany today ahead of weekend national elections
  • RT @BIS_org: Since the early 1990s, changes in the #MonetaryPolicy stance have affected a rather narrow set of prices – mostly in the servi…
  • Huawei's CFO Meng Wanzhou reached deal with the US Dept of Justice to return her to China - Dow Jones
  • Cleveland Fed President Loretta Mester says: - sees US GDP in 2022 between 3.75 and 4% - Supports tapering in November and concluding over the first half of 2022 - After liftoff, accommodative policy needed for some time
  • Fed Chairman Jerome Powell doesn't comment on the growth forecast or monetary policy in his introductory remarks
  • Kansas City Fed President Esther George says: - The labor market friction is fading barring a resurgence of virus - A 'normal' economy is likely to remain elusive for some time - Asset buying effects complicate the judging rate change plan
  • The risk rally that charged the S&P 500 and brethren post-FOMC has stalled into Friday's open. DailyFX's @JohnKicklighter discusses what is driving markets post Fed👇 https://t.co/qNuVaDrZPe
Aussie Dollar Relaxed as Trade Gap Yawns

Aussie Dollar Relaxed as Trade Gap Yawns

David Cottle, Analyst

Talking Points

  • Another day, another Aussie data miss
  • The October trade gap yawned nearly twice as wide as markets had expected
  • The Australian Dollar managed to shrug this off

The Australian Dollar was steady on Thursday despite yet another piece of local economic data which managed to underwhelm.

After a woeful growth print on Wednesday, this time it was trade’s turn. The trade deficit for October came in at A$1541 million (US$1.15 billion), hugely wider than the A$610 million gap markets had been looking for. The deficit had been expected to narrow very sharply thanks to surging commodity prices.

As it turned out the value of exports rose by 1%, while imports jumped by 2%. The data will be a worry for those who were expecting a growth fightback in the final quarter of 2016, fueled by export strength.

The Australian Dollar wasn’t hit by the data, although AUD/USD spiked upward just before it. AUD/USD was at 0.7484 after the release, from 0.7487 just before. The Australian stock market also managed to shrug off the numbers in a generally perky Asian session for stocks.

Investors reportedly remain hopeful that increased commodity demand from China will mean that current Australian data weakness won’t prove lasting. There is also some debate as to whether weaker numbers will translate into lower interest rates from the Reserve Bank of Australia. The Cash Rate is already at a record low of 1.5% and, faced with a regionally frothy housing market, the RBA may want to see fiscal policy doing some of the stimulus heavy lifting.

That said it has recently flagged Aussie dollar strength as a possible headwind, and lower rates should weaken it, so more data-watching will be the order of the day for the Aussie.

Holding steady: AUD/USD

Aussie Dollar Relaxed as Trade Gap Yawns

Chart compiled using TradingView

Want to know what DailyFX analysts are thinking right now? Here are our webinars.

--- Written by David Cottle, DailyFX Research

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

DISCLOSURES