The Australian dollar managed to rise today even after the data showed that the trade balance deficit widened, surprising traders who have expected it to decline.
The Australian trade balance posted a deficit of A$1.057 billion in January, up from A$0.69 billion in the previous month. Analysts have expected a decrease to A$0.51 billion. Yet Forex market participants were not particularly worried as they did not expect the Reserve Bank of Australia to cut interest rates in the near future even after the negative news. The central bank may yet slash the rates, buy the cut is not expected to be soon and such outlook is beneficial for the Aussie.
AUD/USD rose from 1.0230 to 1.0254 and AUD/JPY advanced from 96.23 to 96.76 as of 13:08 GMT today.
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