At the top of the hour, we will have the October's Trade Balance data in Australia.
This will be a spotlight in Asia and for the AUD ahead of the November Caixin services PMI which is set for another strong print as the sector benefits from the resurgence of household spending.
According to analysts at Westpac, ''the trade balance should remain broadly stable at $5.8bn in October; underlying this, Westpac expects that both imports and exports will advance by around 3.5%.''
How might this affect AUD
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AUD rose from 0.7370 to 0.7401 via 0.7352 overnight and is sitting at 0.7409 ahead of the event.
AUD enjoys a surplus and a beat of expectations should be positive for the currency that made the highest high since Dec. 2018 overnight.
A disappointment will be a weight in an environment that could see a bullish correction in the greenback off 2.5 year lows.
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.
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