The Australian dollar was extremely weak against its most-traded peers today after China’s trade surplus rose much more than was expected.
China’s trade balance logged a surplus of $41.66 billion in May, up from $23.42 billion in April, demonstrating the largest surplus since December of the last year. Exports rose 1.1%, year-on-year, but experts explained that by rush of companies to ship goods before the US tariffs come into effect. Imports tumbled 8.5%, which signals about weakness of the Chinese economy and does not bode well for the Australian economy, which strongly relies on trade with China.
AUD/USD dropped from 0.7004 to 0.6968 as of 14:35 GMT today. EUR/AUD rallied from 1.6153 to 1.6228.
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