Aussie Trade Balance: Surplus suffers on higher imports, AUD unchanged
The Aussie trade surplus is a driver for AUD and the December numbers have been released as follows:
Australia Dec. Balance goods/svcs A$+8,356 mln, s/adj.
Dec goods/services Exports +1 pct MoM, seasonally adjusted.
Australia Dec goods/services Imports +5 pct MoM, seasonally adjusted.
The data was anticipated to fall as reopening demand lifts both import prices and volumes, analysts at Westpac said in a note before the event.
AUD/USD reaction
There has been little reaction to the data this time around as markets have bogger fish to fry in, 1. the Reserve Bank has released its quarterly Statement on Monetary Policy (SMP), and 2. US Nonfarm Payrolls data.
AUD/USD daily chart
Meanwhile, the bears are monitoring for confirmation that the current bullish daily correction may have ended from Thursday's candle's close.
An ideal and textbook outcome would be a bearish engulfing candle such as this:
About the Trade Balance
The trade balance released by the Australian Bureau of Statistics is the difference in the value of its imports and exports of Australian goods. Export data can give an important reflection of Australian growth, while imports provide an indication of domestic demand. Trade Balance gives an early indication of the net export performance. If a steady demand in exchange for Australian exports is seen, that would turn into a positive growth in the trade balance, and that should be positive for the AUD. Review Alex Nekritin's Article - Trading the Aussie with Australia Trade Balance
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
