Aussie Trade Balance: Exports soar 6% MoM, AUD at a standstill
|Australia's trade data has been released, a highly anticipated event where the nation's surplus throughout the covid crisis has been a supporting factor to the country's currency.
Key notes
Australia May balance goods/svcs A$+9,681 mln, s/adj (Reuters poll: a$+10,000 mln)
Exports +6 pct MoM, seasonally adjusted vs 3% in April.
Imports +3 pct MoM, seasonally adjusted.
AUD/USD, down 0.16% on the day so far at 0.7488 moments after the release, has hardly budged don the release as investors hold back for the final US data of the week and the all-important Nonfarm Payrolls.
The focus in markets this week has been on the coronavirus spread which has benefitted the greenback, soring to fresh cycles highs overnight, as the currency collects a safe haven bid while investors scurry from nations most affected by the new Delta wave; Australia has been one of the nations impacted.
US Dollar Index: Overbought RSI probes DXY bulls near three-month top
AUD/USD: Depressed near 0.7500, braces for yearly low on coronavirus concerns, firmer USD
About the Trade Balance
The trade balance released by the Australian Bureau of Statistics is the difference in the value of its imports and exports of Australian goods. Export data can give an important reflection of Australian growth, while imports provide an indication of domestic demand. Trade Balance gives an early indication of the net export performance. If a steady demand in exchange for Australian exports is seen, that would turn into a positive growth in the trade balance, and that should be positive for the AUD.
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