China’s record trade surplus and strong export growth lift the Australian Dollar amid easing Middle East tensions.
The Australian Dollar (AUD) rose against the US Dollar (USD) on Tuesday, recovering from a near two-month low. The gain followed reports of a pause in Israel-Iran hostilities and stronger-than-expected Chinese trade data, a key driver for Australia’s economy.
China’s trade surplus surged to USD 105.43 billion in May, exceeding forecasts of USD 92.1 billion and marking the highest level since January. Exports grew 19.4% year-over-year, driven by demand for semiconductors amid AI investment, while imports rose 27.4%, signaling recovering domestic demand.
The data eased concerns over global demand and supported risk sentiment, though oil prices dipped slightly on geopolitical relief. The AUD’s rebound remains modest, reflecting broader market caution.