Australian Dollar Gains After Trade Data
The Australian dollar rose above $0.634 on Thursday, hitting a one-week high after data showed Australia’s trade balance beat expectations in January, boosted by accelerating export growth and falling imports.
A report earlier this week also showed Australia’s economy expanded by 0.6% in the fourth quarter, up from 0.3% in the previous quarter and beating market expectations of 0.5%. On monetary policy, RBA Deputy Governor Andrew Hauser said the central bank was closely monitoring the impact of the escalating global trade war on domestic inflation.
He stressed that it was too early to declare victory over inflation and advocated a cautious approach to any further interest rate cuts. The Aussie also benefited from a broadly weaker U.S. dollar, which has been pressured by a stronger euro and the impact of President Donald Trump’s tariffs.
Source: Trading Economics