The trade balance report released from China was not particularly good. Yet this did not prevent the Australian dollar from rising, even though China is Australia’s biggest trading partner, thus news from the Asian country usually has a big influence on the Australian currency.
China’s trade surplus swelled from $311 billion to $343 billion in July, exceeding analysts’ predictions by a wide margin. While the indicator looked good at the first glance, the truth was rather different as both imports and exports fell, it is just that imports fell far more than exports. The data does not bode well for Australia’s economy, which is strongly dependent on selling commodities to China. Yet the Aussie did not feel disturbed by the news, rising against its major peers.
AUD/USD rose from 0.7612 to 0.7635 as of 9:54 GMT today. AUD/JPY gained from 77.67 to 78.20.
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