AUD Trades Higher Despite Weak Trade Balance Data

The Australian Dollar (AUD) has traded higher against its risky peers despite weak Trade Balance data for August. The data showed that Australia's trade surplus narrowed sharply to A$495 million, down from a revised surplus of A$1,923 million in the previous reading.

According to the report, imports grew by 5.8% in August, while exports rose 3.7%. This strong growth in imports shrank the overall trade data, indicating that domestic demand is increasing.

The Reserve Bank of Australia (RBA) hiked interest rates by 25 basis points to 4.6% on Tuesday, citing a commitment to bring inflation down to the 2% target. RBA Governor Michele Bullock kept the door open for further monetary policy tightening.