Forex
Australian Dollar Surges Amid Weak Trade Balance Data
The Australian Dollar gained against its major peers despite weak Trade Balance data for August. The RBA hiked interest rates by 25 bps to 4.6% on Tuesday, and Governor Michele Bullock kept the door open for further monetary policy tightening.
The Trade Balance data showed a surplus of A$495 million in August, down from A$1,351M in July. Imports grew by 5.8% while exports rose 3.7%. The strong growth in imports shrank the overall trade data.
Against the US Dollar, the Australian currency is almost flat at around 0.6945. The US Dollar trades broadly firm due to strong capital inflows amid surging United States Treasury Yields.