Aussie Dollar Holds Ground Amid Stronger Trade Data
The Australian dollar was little changed to around $0.654 on Thursday, holding its recent gains, supported by stronger-than-expected trade balance figures. Australia’s goods trade surplus widened to AUD 7.31 billion in July, the largest in 17 months and well above expectations of AUD 5.0 billion.
The improvement was driven by a 3.3% rise in exports to a 21-month high of AUD 46.02 billion, following strong gains in June, while imports fell 1.3% to AUD 38.71 billion, weighed by softer demand for non-monetary gold.
The Aussie also drew support from recent data showing upbeat Q2 GDP growth, reinforcing bets that the Reserve Bank of Australia will hold rates steady in late September.
Market swaps priced in a nearly 90% odds of no change as policymakers monitor a labor market gradually easing from full employment. Elsewhere, the US dollar struggles after weaker July JOLTS job openings, with traders now eyeing weekly jobless claims, ADP employment data, and the ISM Services PMI later.
Source: Trading Economics
