The Australian Trade Balance for March: A$+10,602 mln, s/adj (Reuters poll: A$+6,800 mln)
The Australian Trade Balance for March has been released as follows:
Australian Trade Balance
- AUSTRALIA MARCH BALANCE GOODS/SVCS A$+10,602 MLN, S/ADJ (REUTERS POLL: A$+6,800 MLN)
- 06-May-2020 19:30:01 - AUSTRALIA MARCH GOODS/SERVICES EXPORTS +15 PCT M/M, SEASONALLY ADJUSTED
- 06-May-2020 19:30:01 - AUSTRALIA MARCH GOODS/SERVICES IMPORTS -4 PCT M/M, SEASONALLY ADJUSTED
How AUD has reacted
AUD/USD has been under pressure and has on the data.
Tradewars are back in focus as the US administration has stepped up consideration of economic measures against China. The US President Donald Trump is holding China accountable for failing to prevent the global spread of the new coronavirus.
There has been a slew of bombshell stories this week, albeit getting less attention that what might be expected from markets. Had they been surfaced during the 2018/19 trade wars, they would have been front-page news and trigging massive risk-off events in financial and commodity markets. More on that here, as the US dollar is seen to benefit from such themes: DXY testing positive territories around the psychological 100 level against bullish funda backdrop.
Meanwhile, markets will be keeping an eye on USD/CNH. AUD trades in sync with the yuan which has been pressured in the last number of trading session this month.
Description of 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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