AUD/USD keeps losses despite big beat on Australian trade surplus
|- AUD/USD continues to trade in the red despite the upbeat Aussie trade data.
- Australia's trade surplus widened to A$7,180 in September.
- The US dollar continues to draw bids on trade optimism.
AUD/USD is struggling to pick up a strong bid despite a better-than-expected Australian trade data.
The country's trade surplus widened to A$7,180 million in September, beating the expected print of A$5,000 million by a big margin. The trade surplus stood at A$5,926 million in August.
Exports or outbound shipments rose 3% in September, having dropped by 3% in August. Meanwhile, Imports or inbound shipments also registered a growth of 3%. The uptick in imports could be considered a sign the domestic demand is holding up well following Reserve Bank of Australia's multiple rate cuts. Also, the rise in exports is good news.
Even so, the Aussie dollar is not impressed. The AUD/USD pair continues to trade in the red near 0.6877. An 8-pip bounce seen immediately after the data release was short-lived.
The currency pair may drop further as the American Dollar is attracting bids on the easing of US-China trade tensions. Reuters said the phase-one of the trade deal could be signed in December while Fox Business News quoted Chinese trade source as saying the US will not increase tariffs on Chinese goods scheduled to take place from December 15.
On the data front, weekly reading of the US Initial Jobless Claims and speech from the President and CEO of the Federal Reserve Bank of Dallas, Robert Kaplan, will be observed closely.
Technical levels
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