- The Australian Dollar maintains its upward momentum following the release of robust Trade Balance figures on Thursday.
- The Australian Bureau of Statistics announced a trade surplus of AUD 6.9 billion for March, significantly exceeding the anticipated AUD 3.13 billion.
- President Trump conveyed optimism regarding the potential for a trade accord with China.
The Australian Dollar (AUD) is building on its gains against the US Dollar (USD) on Thursday. The AUD/USD pair is experiencing upward pressure in the wake of the release of Australia’s latest Trade Balance data. Market participants are now keenly awaiting the release of the Institute for Supply Management’s (ISM) Manufacturing Purchasing Managers Index (PMI) data from the United States (US), which is slated for release later in the North American trading session. This data will provide further insights into the health of the US manufacturing sector and potentially influence currency valuations.
The Australian Bureau of Statistics reported a substantial trade surplus of AUD 6.9 billion for March, a figure that handily surpassed both market forecasts of AUD 3.13 billion and the revised February surplus of AUD 2.85 billion (revised downwards from an initial AUD 2.97 billion). This impressive surplus was largely attributed to a significant 7.6% increase in exports, coupled with a 2.2% decrease in imports during the month. The surge in exports suggests strong global demand for Australian goods, while the decline in imports could indicate a softening in domestic demand or increased competitiveness of local industries.
Earlier in the week, on Wednesday, the Australian Bureau of Statistics (ABS) also released data indicating that the Consumer Price Index (CPI) rose by 0.9% on a quarter-over-quarter basis in the first quarter of 2025. This represents an acceleration from the 0.2% increase recorded in the fourth quarter of 2024 and also exceeded market expectations, which had anticipated a rise of 0.8%. On an annualized basis, the CPI climbed 2.4% in the first quarter, surpassing the projected 2.2%. This inflation data will be closely scrutinized by the Reserve Bank of Australia (RBA) as it considers future monetary policy decisions, particularly regarding interest rate adjustments aimed at maintaining price stability and supporting sustainable economic growth. The RBA’s next policy meeting will be a key event for traders looking for clues on the future direction of the Australian Dollar.
