Australia’s trade balance increased more than was expected, but that did not prevent the Australian dollar from falling. The likely reason for the currency’s drop was the risk-negative sentiment on the Forex market.
The Australian Bureau of Statistics reported that the trade surplus widened to A$1.87 billion in June (seasonally adjusted) from the negatively revised A$0.73 billion in May. Experts were anticipating a much smaller increase to just A$0.91 billion. Yet the Aussie did not respond to the positive report, dragged down by risk aversion caused by heating tensions between the United States and China.
AUD/USD dropped from 0.7403 to 0.7364 as of 12:26 GMT today. EUR/AUD gained from 1.5744 to 1.5774.
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Widening Trade Surplus Does Not Prevent Aussie’s Drop
