Australia Trade Balance greatly beats surplus expectations, but no bid in AUD

The Australian Bauru of Statistics (ABS) has released the Trade Balance for October as follows with a much wider surplus:

Australia Oct balance goods/svcs a$+7,456 mln, s/adj (Reuters poll: A$+5,800 mln).

Australia Oct goods/services exports +5 pct MoM, seasonally adjusted.

Australia Oct goods/services imports +1 pct MoM, seasonally adjusted.

AUD/USD update

AUD/USD rose from 0.7370 to 0.7401 via 0.7352 overnight and was sitting at 0.7406 ahead of the event.

Despite the data, the price is unchanged moments after the release but should be underpinned on the positive beat. 

However, as explained in the preview, the US dollar could be due a positive correction from the 2.5-year lows following a series of bearish sessions for the week.

DXY is testing old weekly resistance below the 91 level:

Description of 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.

The 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.