Australian Trade Balance (AUD) Jun: 17670M (exp 12000M; prev 15965M) AUD supported

The trade balance released by the Australian Bureau of Statistics has been released as follows:

Australian Trade Balance (AUD) Jun: 17670M (expected 12000M; previous 15965M).

Exports (MoM) Jun: 5% (exp 0%; prev 9%) - Imports (MoM) Jun: 1% (exp 3%; prev 6%).

AUD/USD has popped to fresh session highs of 0.6962 so far. The AUD has been one of the best-performing G10 currencies in recent weeks but suffered a pullback at the start of the week which it is currently correcting. The data is aiding the move in Asian trade today. 

• AUD/USD Price Analysis: Bulls seeking higher grounds into key data events

Prior to the data, it was explained that the price could be headed higher to mitigate a price imbalance on the hourly time frame:

The data has jolted the price higher en route to the area of imbalance with still some way to go, never theless. However, if old highs in the 0.6950s support, then the bulls will stand a good probability of being able to run higher towards 0.7000.

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.