Australia’s unexpected AUD 3,018 million trade deficit in May weighs on the AUD as markets await US Nonfarm Payrolls.
The Australian Dollar (AUD) trades sideways near 0.6900 against the US Dollar (USD) on Thursday, stabilizing after a 4% June decline. The AUD/USD pair remains range-bound between 0.6865 and 0.6930, with weak Australian trade data limiting upside.
Australia’s May trade balance swung to a AUD 3,018 million deficit, missing forecasts of a AUD 2,200 million surplus. Exports fell 6.9% after a 7.2% April gain, while imports rose 2.6%, deepening the shortfall. The USD, meanwhile, strengthens on strong US economic data and AI-driven investment flows.
Markets now focus on June’s US Nonfarm Payrolls report, which could influence Federal Reserve rate expectations. Fed Chair Kevin Warsh reiterated a commitment to the 2% inflation target, supporting bets for a September hike.