Australian Dollar Retreats After Rising on China’s Trade Data

The Australian dollar was trading strong at the beginning of the Thursday’s trading session, though it has retreated by now. The rally was a result of positive macroeconomic data in China — Australia’s biggest trading partner.
China’s trade balance demonstrated a surplus of $39.16 billion in January, down from $57.06 billion in December but exceeding the average forecast of $33.5 billion excess. Diving deeper into the report, its components were much better than analysts had expected. Exports rose 9.1%, year-on-year, instead of falling 3.2% as economists had forecast. Imports fell 1.5%, much less than was expected — 10%.
As for data in Australia itself, the Melbourne Institute inflation expectations advanced from 3.5% to 3.7% in February. There will be no more economic reports in Australia this week.
AUD/USD traded at 0.7093 as of 16:03 GMT today after opening at 0.7086 and rising to the daily high of 0.7131. EUR/AUD edged up from 1.5877 to 1.5896. AUD/JPY retreated from the open of 78.67 to 78.49 following the earlier rally to 79.24.

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