Australian Dollar remains calm following Trade Balance data
AUD/USD steadies after two days of gains, trading around 0.7060 during the Asian hours on Thursday. The pair moves little as the Australian Dollar (AUD) remains silent following the release of domestic Trade Balance data.
Following the release of Australia's Trade Balance data for June, the Australian Dollar (AUD) showed relative stability, trading around 0.7060 during Asian trading hours on Thursday. The Australian Bureau of Statistics (ABS) reported a significant improvement in the Trade Balance, which turned into a surplus of A$1,929 million month-over-month (MoM), a stark contrast to the revised deficit of A$2,367 million in the previous month.
This positive shift exceeded market expectations, which had previously forecasted a deficit of A$1,100 million.
The improvement was primarily driven by a substantial 9.6% MoM increase in exports, up from a revised 7.6% drop in May, while imports decreased by 0.2% MoM, reversing the 0.9% gain recorded in the previous month. The AUD/USD pair could potentially see further appreciation as the US Dollar (USD) faces headwinds from declining safe-haven demand.
Recent reports suggest that Iran and Oman reached an agreement on a shipping route through the Strait of Hormuz, which could further boost Middle Eastern energy flows. The joint statement between Iran and Oman is currently in its final drafting stage, with the agreement expected to operate for two to four months.
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