AUD/USD: No response to above-forecast Australian trade surplus

  • AUD is not impressed by an uptick in Australia's trade surplus. 
  • The RBA is expected to keep rates unchanged at 0.75%. 

AUD/USD is struggling to extend Monday's 0.86% rally despite the upbeat Aussie data released at 00:30 GMT.

Australia's current account surplus ticked higher to A$7.9 billion, beating the expected rise to A$6.3 billion from the second quarter's A$5.9 billion, the official data showed. "For the first time in 46 years, we have had two consecutive current account surpluses," ABS Chief Economist Bruce Hockman said, according to Kyle Rodd, Market Analyst, Australia, IG.

The above-forecast current account surplus will likely put an upward pressure on the gross domestic product (GDP) figures scheduled for release on Wednesday. The data is expected to show the economy expanded at an annualised rate of 1.7% in the third quarter compared to 1.4% in the second quarter. The quarter-on-quarter growth rate is expected to remain unchanged at 0.5%.

AUD/USD, however, is not impressed by the rise in the current account surplus. The pair has barely moved in the last 25 minutes and is currently trading largely unchanged on the day at 0.6820.

The lackluster response could be associated with caution ahead of the Reserve Bank of Australia's (RBA) rate decision, scheduled at 03:30 GMT. The bank is widely expected to keep rates unchanged at 0.75% and deliver a rate cut in February.

Note that Australia's latest economic readings have been anything but positive. The manufacturing activity contracted in the month of November, job ads fell further, inflationary pressures eased and building approvals fell much more than expected, signaling a deeper deterioration in the economic activity, according to Kathy Lien, Managing Director BK Asset Management.

As a result, the RBA is unlikely to sound hawkish. The central bank is expected to keep rates unchanged at 0.75% and deliver a rate cut in February.

Technical levels


Today last price 0.6823
Today Daily Change -0.0003
Today Daily Change % -0.04
Today daily open 0.6826
Daily SMA20 0.6819
Daily SMA50 0.6806
Daily SMA100 0.682
Daily SMA200 0.6921
Previous Daily High 0.6826
Previous Daily Low 0.6762
Previous Weekly High 0.68
Previous Weekly Low 0.6754
Previous Monthly High 0.6929
Previous Monthly Low 0.6754
Daily Fibonacci 38.2% 0.6802
Daily Fibonacci 61.8% 0.6786
Daily Pivot Point S1 0.6783
Daily Pivot Point S2 0.674
Daily Pivot Point S3 0.6718
Daily Pivot Point R1 0.6847
Daily Pivot Point R2 0.6869
Daily Pivot Point R3 0.6912



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

GBP/USD stays below 1.3350 on poor UK PMIs

GBP/USD hits fresh session lows of 1.3335 following an unexpected drop in the UK's Preliminary Manufacturing and Service PMI reports. However, the downside appears capped amid growing Brexit optimism. 


EUR/USD keeps range around 1.1130 on downbeat PMIs

EUR/USD trims gains to trade near 1.1130 region after the sentiment around the euro was dented by the disappointing German and Eurozone Preliminary Manufacturing PMIs. Trade concerns also keep the gains limited. 


The phantom of fear pierces crypto market foundations

Negative technical indicators are extremely volatile and are approaching a technical rebound. Ethereum has fundamentals in play versus Bitcoin which could be lethal. XRP is not immune to downfalls and adds to the dangerous game of critical supports.

Read more

Gold consolidates in a range, flat-lined around $1475 level

Gold extended its sideways consolidative price action through the early European session on Monday and remained confined in a narrow trading band near the $1475 region.

Gold News

USD/JPY clings to modest gains, just below mid-109.00s

The USD/JPY pair edged higher on the first day of a new trading week, albeit lacked any strong follow-through and remained well within the previous session's trading range.