The trade balance generated by the Australian Bureau of Statistics was published as follows:
Australian Trade Balance (AUD) June: 17,670m (expected 12,000m; previous 15,965m).
Exports (MoM) June: 5% (exp 0%; prev 9%) – Imports (MoM) June: 1% (exp 3%; prev 6%).
AUD/USD has hit new session highs so far at 0.6962. The AUD has been one of the best performing G10 currencies in recent weeks but suffered a pullback early in the week which it is currently correcting. The data facilitates the movement of Asian trade today.
Prior to the data, it was explained that the price could be increased to smooth out a price imbalance on the hourly time frame:
The data pushed the price higher en route to the imbalance zone with still some way to go, however. However, if the former highs at 0.6950 support, then the bulls will have a good chance of being able to run higher towards 0.7000.
About the trade balance
The trade balance generated by the Australian Bureau of Statistics is the difference in the value of its imports and exports of Australian goods. Export data can provide an important reflection of Australian growth, while imports provide an indication of domestic demand. The trade balance gives a first indication of net export performance. If stable demand in exchange for Australian exports is observed, this would turn into positive growth in the trade balance, and this should be positive for the AUD.
