Australian Dollar Remains Weaker Following Trade Balance Data
The Australian Dollar (AUD) weakened against the US Dollar (USD) following weaker-than-expected Trade Balance data released on Thursday (6/2). In addition, the AUD/USD pair received downward pressure from risk-off sentiment amid growing concerns over US-China trade tensions.
Australia’s trade surplus fell to $5,085 million in December, missing the expected $7,000 million and down from the previous surplus of $6,792 million. Exports increased by 1.1% MoM, slowing from a 4.2% increase in November, while imports jumped by 5.9% MoM, up from 1.4% in the previous month.
Traders are keeping an eye on the ongoing trade war between the United States (US) and China, Australia’s main trading partner. China has retaliated with new US tariffs of 10% that came into effect on Tuesday. However, Trump said on Monday afternoon that he would likely speak to China in the next 24 hours. He also warned, "If we can't reach a deal with China, the tariffs will be very, very large."
Source: FXStreet
