Forex Trading News – Australian Trade Balance

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A better than expected Trade Balance for May, has not affected positively the Australian Dollar, at least primarily. On April Australia’s Trade Balance was 1597 million and the poll for May indicate a number of 1900 million. However the Balance has grown strongly above forecasts, at 2333 million in favor of the trade reliant economy, raising the expectations for even higher growth rate in the present year. Since the terms of trade for Australia are growing consistently the local economy will recover faster than other developed economies. In adjusted terms Australia’s exports in May were improved by 3%. On the other hand and despite the unexpected widening in the Australian Trade Balance, the domestic currency upon the announcement of the news was not influenced positively. The Australian Dollar has lost some 41 pips against the US Dollar to touch 1.0683, which consists a session low so far. Currently the AUDUSD pair is trading close to its low at 1.0692. The markets are focusing on the RBA rate decision which will be announced at 04:30 GMT. The inflation is surging from the begging of the year, but the policymakers postures is highly questioned, thus this meeting is of great importance for the future of the AU Dollar.