Australia’s trade balance swung to a A$3,018 million deficit in May, missing forecasts for a A$2,200 million surplus.
The Australian Dollar held near 112.10 against the Japanese Yen on Thursday, recovering earlier losses despite a surprise trade deficit. Australia’s trade balance fell to a A$3,018 million deficit in May, reversing April’s A$1,383 million surplus and missing expectations for a A$2,200 million surplus.
The deficit was driven by a 6.9% drop in exports and a 2.6% rise in imports. Analysts had anticipated a continued surplus, making the reversal a notable miss. Meanwhile, the Japanese Yen remained weak, pressured by expectations of further Bank of Japan rate hikes after the Q2 Tankan index hit an eight-year high.
Thin liquidity ahead of a US holiday kept traders cautious, with potential JPY intervention risks looming. The cross showed little reaction, reflecting balanced pressure on both currencies.