Australia’s May trade balance swung to a A$3,018M deficit, missing expectations of a A$2,200M surplus and weighing on the AUD.
The Australian Dollar steadied near 0.6900 against the USD after Australia’s trade balance posted a A$3,018M deficit in May, reversing a revised A$1,383M surplus in April. The result fell short of the A$2,200M surplus forecast by economists, driven by a 6.9% month-on-month drop in exports and a 2.6% rise in imports.
April’s surplus was revised downward from A$1,791M, while exports had surged 7.2% the prior month. Imports, which rose just 0.2% in April, were also revised lower from an initial 0.8% gain. The data underscores weakening external demand amid global growth concerns.
The AUD/USD pair held within a narrow range as traders awaited US Nonfarm Payrolls data later Thursday. The US Dollar remained stable after Fed Chair Kevin Warsh’s comments at the ECB Forum were perceived as less hawkish than expected.