Australian Dollar remains calm despite strong China Trade Balance data
The Australian Dollar (AUD) remains steady against its major currency peers, trading flat around 0.7050 during the Asian trading session on Tuesday. The Aussie pair consolidates even as the Chinese Trade Balance data for May has come in stronger than expected.
Given that the Australian economy relies heavily on its exports to Beijing, the impact of the Chinese Trade Balance data remains significant on the Australian Dollar.
China’s Trade Balance has arrived at $105.43 Billion, higher than the $92.1 Billion estimates and the previous reading of $84.82 Billion. Imports grew strongly by 27.4%, while they were anticipated to rise moderately by 25% vs. the prior release of 25.3%. While Exports rose 19.4% against expectations of 15% and the previous release of 14.1%.
Going forward, investors will focus on China’s Consumer Price Index (CPI) data for May, which will be released on Wednesday.
Meanwhile, the US Dollar (USD) trades marginally lower as oil prices have cooled down, following a halt in hostilities between Israel and Iran. As of writing, the US Dollar Index (DXY), which tracks the Greenback's value against six major currencies, ticks lower at around 99.95. The exchange of attacks between Israel and Iran stopped after United States (US) President Donald Trump urged for a ceasefire.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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