Regional currencies gain as geopolitical risks ease, while Australia’s trade surplus narrows more than expected in latest data.
Asian currencies held gains against the USD as optimism over a potential Iran nuclear deal reduced geopolitical tensions. The broader market sentiment supported risk assets, though moves remained modest ahead of key economic releases later this week.
Australia’s trade surplus shrank to AUD 11.3 billion in June, missing forecasts of AUD 12.5 billion. Exports fell 1% month-on-month, while imports rose 2%, signaling softer external demand and resilient domestic consumption.
The Australian dollar trimmed earlier gains following the data, trading 0.2% lower against the USD. Regional equities showed mixed reactions, with limited spillover from the trade figures.