- Exports and imports both rose in Australia in April.
- Trump says will make a decision on additional China tariffs after G20.
- Coming up: NY Fed President Williams’ speech and housing market data from Australia.
The AUD/USD pair made an attempt toward the 0.7 mark in the early NA session but struggled to gather momentum. As of writing, the pair was trading at 0.6982, adding 0.2% on a daily basis.
Earlier today, the data from Australia showed that imports and exports both increased by 3% on a monthly basis in April and the trade surplus retreated slightly from March levels. The last data of the week from Australia on Friday will be home loans and investment lending for homes, which both showed sharp declines in the previous publication. Nevertheless, these data are unlikely to have a significant impact on the AUD’s market valuation.
On the other hand, the US Dollar Index struggled to stage a meaningful recovery on Thursday as investors remained focused on ECB President Draghi’s optimistic remarks and caused market demand to shift toward the EUR. As of writing, the US Dollar Index was down 0.4% on a daily basis at 96.90. The U.S. Census Bureau today said that the trade deficit in the U.S. narrowed to $50.8 billion from $51.9 billion April and the weekly jobless claims stayed unchanged at 218K on a weekly basis.
Despite the USD weakness, however, the latest headlines surrounding the U.S.-China trade deal seem to be making it difficult for the pair to gain traction. President Trump today said that they will make a decision on imposing tariffs on an additional $300 billion worth of Chinese good after the G20 meeting. On the same subject, the South China Morning Post (SCMP) reported that Trump was “probably planning” to impose tariffs on all Chinese imports.
Technical levels to watch for
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