Australia’s trade Balance has been released and the surplus is a big disappointment after having reached a record high $17.7bn in June.
There is a surplus of just AUD8.733bn vs. the expected +14.5bn vs. the previous +17.7bn.
Massive trade surpluses have driven 13 consecutive quarters of current account surpluses, a record since records beginning in 1959.
However, the Aussie is under pressure on this release, losing ground into 0.6740 at the time of writing from near 0.6750 prior to the release.
The bears are in control while below the prior lows near 0.6750 that would be expected to act as resistance for the near term, leaving the emphasis on a test of 0.6730 that guards 0.67 the figure for the day ahead. A break there will open the prospects of a downside extension on the daily chart:
About the Trade Balance
The trade balance released by the Australian Bureau of Statistics is the difference in the value of the 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.
