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
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
GBP/USD
Bearish
USD/JPY
Mixed
Gold
Bearish
Oil - US Crude
Mixed
Bitcoin
Bullish
More View more
Breaking news

ECB leaves all rates unchanged in line with expectations

Real Time News
  • $USDCAD had shot-up to test resistance in a prior zone of support after the Friday employment releases, and sellers have since come back to re-test monthly lows following yesterday’s #FOMC rate decision. More from @JStanleyFX here:https://t.co/QuRR2gnJT8 https://t.co/EnGJyGzOIG
  • US 30-Year Bonds Draw 2.307% Primary Dealers Awarded: 15.5% Direct Bidders Awarded: 21.1% Indirect Bidders Awarded: 63.4% B/C Ratio: 2.46
  • LIVE NOW: Join @JStanleyFX as he runs through price action set-ups for the FX and CFDs market. https://www.dailyfx.com/registerToSeminar?webinar=3952937094787220994&utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • here we go, starting now -> https://www.dailyfx.com/webinars/643096611 https://t.co/bNQQ0K2hwF
  • LIVE IN 5 MINUTES: Join @JStanleyFX as he runs through price action set-ups for the FX and CFDs market. https://www.dailyfx.com/registerToSeminar?webinar=3952937094787220994&utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • Trump to discuss China trade issues with advisers this afternoon -BBG
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.67%, while traders in France 40 are at opposite extremes with 77.30%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/tfwztUY3jx
  • LIVE IN 15 MINUTES: Join @JStanleyFX as he runs through price action set-ups for the FX and CFDs market. https://www.dailyfx.com/registerToSeminar?webinar=3952937094787220994&utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • BOC's Poloz: - Some regions continue to struggle in Canada - Insidious effect from trade uncertainty $CAD
  • BOC's Poloz: - Household debt is the most important vulnerability to financial system - Low rates globally are likely to continue $CAD
Australian Dollar Battered By Hefty Current Account Miss

Australian Dollar Battered By Hefty Current Account Miss

2017-06-06 02:52:00
David Cottle, Analyst
Share:

Talking Points:

  • Australia’s first-quarter current-account deficit was much bigger than expected
  • This does not bode well for Wednesday’s Gross Domestic Product release
  • The Australian Dollar did not take the news well

Would you like live coverage of major Asia/Pacific market movers like Wednesday’s Australian GDP figures? Try the DailyFX webinars.

The Australian Dollar took a nasty knock Tuesday as current account data raised the specter of weaker official growth numbers.

The first-quarter current-account deficit was A$ 3.1 billion (US$2.3 billion). This was much worse than the expected A$0.5 billion shortfall which markets had expected. To make matter worse, net exports fell 0.7%, when a 0.4% slip was forecast. This was a bad miss and will drag on official Gross Domestic Product data for the same period, which will be released on Wednesday.

AUD/USD investors certainly seemed worried about it, and took the pair down quickly in the aftermath.

Australian Dollar Battered By Hefty Current Account Miss

GDP is expecrted to rise 0.3% on the quarter and 1.6% on the year. Even if the result comes in as forecast it will represent a deceleration from the 1.1% and 2.4% rates seen, respectively, in the final quarter of 2016. Numbers such as the current account raise the chances of a miss.

The Reserve Bank of Australia will make its June monetary policy decision later at 04:30 GMT, with no moves expected. Futures-market pricing suggests that current, record low Australian interest rates will not rise this year, and indeed well into next, even if they fall no further either.

--- Written by David Cottle, DailyFX Research

Contact and follow David on Twitter: @DavidCottleFX

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

DISCLOSURES

News & Analysis at your fingertips.