- AUD/USD remains sidelined near 0.6310 after Australia’s upbeat trade data.
- Exports surged by 29% in March and imports rose by 10%.
- Signs of risk recovery in broader markets could bode well for the Aussie dollar.
The AUD/USD pair is barely moving in response to the Aussie trade data released at 01:30 GMT.
The preliminary trade numbers for March showed an export growth of 29% and a 10% rise in imports or inbound shipments.
Exports surged mainly due to an uptick in outbound shipments of the resource sector. “Among the key movers were exports of iron ore to China, Australia’s largest trading partner, which increased significantly following declines in January and February. There were also large increases in the value of exports of coal, gas, and petroleum, and strong exports of non-monetary gold, particularly to Hong Kong and the United Kingdom,” official report said.
Meanwhile, imports rose due to an uptick in the value of imports of non-monetary gold, aircraft, and consumer electronics. The trade data has come a day after the preliminary Aussie retail sales figure for March showed a surge in consumer spending, possibly due to panic buying ahead of the coronavirus-induced lockdown.
AUD/USD recovered from 0.6283 to 0.6310 in the 30 minutes leading up to the release of the trade data but is now struggling to extend the upward move.
The lackluster reaction is somewhat surprising as exports improved in March, having dropped in January and February. Moreover, panic buying by Australia’s overseas clients ahead of the coronavirus-induced lockdown may have caused a surge in exports.
That said, the S&P 500 futures have recovered early losses and the West Texas Intermediate crude is flashing 3% gains. If the risk recovery gathers pace, the bid tone around the Aussie dollar will likely strengthen, yielding stronger gains in AUD/USD.
Technical levels
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