Aussie Dollar Holds Firm Amid Weaker US Dollar and Strong Trade Data

The Australian dollar remained strong, holding above $0.705 and near its seven-week high. This stability is attributed to the weaker US dollar and positive domestic trade data.

Australia's balance on goods trade showed an unexpected surplus of A$1.9 billion in June, following a revised deficit of A$2.4 billion in May. The rebound in exports of gold and iron, along with flattened imports, contributed to this outcome.

The Reserve Bank of Australia's upcoming policy meeting is now the focus, with markets pricing in minimal chances of a rate hike after three increases this year. However, there is still a 60% likelihood of a hike in November.