Asian Session Recap: Australian Trade Balance Surprises the Market
Arslan Butt • 1 min read
During the Asain session, the spotlight was on the Australian dollar as the Australian Bureau of Statistics was supposed to release the trade balance figures. Traders are also pricing in the Bank of Canada policy decision. Let’s take a quick look into this…
- The Australian dollar is supported especially after a jump in the trade surplus figure. Considering the ongoing trade war between China and the US, most investors were expecting a negative figure. But here we are – the trade balance beats 1.46B forecast by 0.09B. We can’t ignore the fact that the trade surplus has come down from 1.94B during last month, which is sort of a headwind for the AUD/USD. You can read more details here International Trade in Goods and Services, Australia, Jul 2018
- The Loonie is supported after the release of Canadian trade balance. The data showed the trade deficit has narrowed from 0.7B CAD to 0.1B CAD.
- In addition, the Bank of Canada kept interest rates unchanged at 1.50% as expected. Canadian GDP is expected to slow insignificantly in Q3, and CPI could move back to 2% in early 2019.
- Sterling has completed 50% Fibonacci retracement against the dollar at $1.2885. The dramatic bullish move came after the Bloomberg report which indicated that the top Eurozone nation is willing to “accept a less detailed agreement on the UK’s future economic and trade ties with the EU in a bid to get a Brexit deal done.”
I think it’s enough to begin the day with as we are going to have a very busy day. Let’s speak in detail in our economic events outlook. Stay tuned to FX Leaders economic calendar for the real-time coverage of the economic events!