The Australian dollar has started the Monday’s session poorly due to the news from China released during Asian trading hours. Yet as of now, the currency managed to bounce against the US dollar and the Japanese yen, though retained its losses versus the euro.
According to the data released today, China’s trade surplus has increased last month. While an improving trade balance usually is a good sign, this time the improvement has been caused mostly by the sharp drop of imports by 17.6 percent. It bodes ill for commodities and commodity-exporting economies. So happens, not only the Australian economy strongly depends on selling of raw materials, but it also ships most of its exports to China.
Yet despite the negative news, the Aussie was able to rise against some of its major rivals. It looks like the euphoria caused by the stellar US employment data released on Friday has started to wane, and traders decided to take profit by selling the US dollars they have accumulated. This gave a relief to riskier currencies, like the Australian one.
AUD/USD rallied from 0.7624 to 0.7698 as of 21:27 GMT today. AUD/JPY ticked from 95.77 to 95.86 after falling to 95.42. At the same time, EUR/AUD jumped from 1.4553 to 1.4665.
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