Aussie Trade Balance leaves AUD/USD unchanged
07.03.2023, 00:34

Aussie Trade Balance leaves AUD/USD unchanged

The trade balance released by the Australian Bureau of Statistics is out as follows:

  • AUD11688M vs. exp AUD12250M; prev AUD12237M.
  • Exports +1% MoM prior -1%.
  • Imports +5% MoM vs. the prior +1%.

AUD/USD update

Unchanged at 0.6730 and flat on the day ahead of the Reserve Bank of Australia RBA and the Federal Reserve's chairman testimony to Congress.

 A 25bp hike is an overwhelming consensus for today's RBA. ''The focus will be on any changes to last month’s statement that “the Board expects that further increases in interest rates will be needed over the months ahead”. We’ll also be looking for the RBA’s take on the softer Q4 wage prints and whether these alter its view on the risk of a “price-wage spiral”. But the recent run of softer data won’t be enough to dispel the RBA’s concern that inflation expectations could become entrenched,'' the analysts at ANZ Bank said. 

About the Trade Balance

The trade balance released by the Australian Bureau of Statistics is the difference in the value of its imports and exports of Australian goods. Export data can give an important reflection of Australian growth, while imports provide an indication of domestic demand. Trade Balance gives an early indication of the net export performance. If a steady demand in exchange for Australian exports is seen, that would turn into a positive growth in the trade balance, and that should be positive for the AUD.

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