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.

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
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
Bearish
Gold
Bearish
GBP/USD
Bullish
USD/JPY
Mixed
More View more
Real Time News
  • RT @macrodesiac_: If you know you know. https://t.co/W2LYqathr5
  • Indices Update: As of 13:00, these are your best and worst performers based on the London trading schedule: US 500: -1.45% Wall Street: -1.78% FTSE 100: -3.03% France 40: -3.10% Germany 30: -3.46% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/Yt3BFBNgjZ
  • ECB's Lagarde says Euro appreciation places downward pressure on prices, adds that the ECB are attentive to the Euro's appreciation $EUR
  • Italy regional vote - Exit poll sees centre left narrowly ahead of right in Tuscany vote
  • ECB's Lagarde says the ECB will open consultation on digital Euro within days
  • US President Trump says in regard to TikTok that China must give up on control or no deal
  • 🇨🇦 New Housing Price Index YoY (AUG) Actual: 2.1% Previous: 1.7% https://www.dailyfx.com/economic-calendar#2020-09-21
  • 🇺🇸 Chicago Fed National Activity Index (AUG) Actual: 0.79 Expected: 1.95 Previous: 1.18 https://www.dailyfx.com/economic-calendar#2020-09-21
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.77%, while traders in NZD/USD are at opposite extremes with 72.74%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/LGODzLXvvD
  • LIVE NOW: Join Technical Strategist @MBForex for his Weekly Strategy Webinar to review the setups we're tracking into the open of the week! https://t.co/chKtG7waxH
Australian Dollar Gains on Huge Trade Beat, But Details Weigh

Australian Dollar Gains on Huge Trade Beat, But Details Weigh

2017-07-06 03:12:00
David Cottle, Analyst
Share:

Talking Points:

  • Australia’s May trade balance data came in at well over double the surplus expected
  • The Australian Dollar duly gained
  • However the data details didn’t all live up to that blockbuster headline

How will your favorite currency fare in the third quarter? The new DailyFX forecasts for all major traded currencies are out. Take a look here

The Australian Dollar got a boost Thursday after May’s trade balance figures simply blew the markets’ forecasts away.

The overall balance – that’s export value minus imports – came in at A$2.471 billion (US$1.88 billion), when the markets had only been looking for a figure of A$1 billion. Exports surged 9% on the month, helped especially by coal, official figures showed, while imports rose by 1%.

However, April’s seasonally adjusted surplus was revised lower and it looks as though net exports still have some work to do if they are not going to be an overall drag on second-quarter growth. This realization may account for AUD/USD’s modest and short-lived bounce on the data, despite the enormous headline beat.

Australian Dollar Gains on Huge Trade Beat, But Details Weigh

And there are few if any monetary-policy implications. The Reserve Bank of Australia shows no inclination to join the more hawkish chorus ringing from some other developed-market central banks and maintained its primary focus on labor and housing markets rather than trade, important though it is.

Interest rate futures markets have started to price in very gradually higher interest rates from well into 2018 but predict no near-term changes to the Official Cash Rate’s current, 1.5% record low.

--- 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