China’s June trade surplus of $112.5 billion exceeds forecasts but falls short of May’s $125.62 billion, weighing on the Australian Dollar.
The Australian Dollar weakens against the Japanese Yen, with AUD/JPY trading near 111.30 in Asian hours. The decline follows China’s June trade balance, which printed at $112.5 billion, above the $107.0 billion estimate but below May’s $125.62 billion surplus.
Exports rose 23.9% year-over-year, slowing from June’s 27% gain, while imports grew 27.5%, down from 36%. In yuan terms, the surplus widened to 767 billion, beating the 740 billion forecast but trailing the prior 859.05 billion. Geopolitical tensions in the Strait of Hormuz further fueled safe-haven demand.
Rabobank strategists maintain a modest upside bias for the AUD, citing potential for one more RBA rate hike in November. Markets await the RBA’s August 11 policy meeting for clarity on tightening risks.