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The Australian Dollar rises as the Aussie Trade Surplus widens in May. The Australian Bureau of Statistics reported a Trade Balance figure of 6,548 million MoM in May, surpassing the expected 5,500 million. The US Dollar struggles as Wednesday’s mixed data fuel rate cut speculations by the Fed. The Australian Dollar (AUD) retraced its recent losses on Thursday. The AUD/USD pair strengthened after the Trade Balance release in Australia, which widened to 6,548 million month-over-month in May, exceeding the expected 5,500 million and April’s balance of 5,024 million. Australia’s Imports plunged by 7.2% MoM in May, swinging from April’s 4.2% increase. Exports shrank 2.5% following the previous decline of 0.6%. The Australian Dollar could appreciate due to a hawkish statement by Reserve Bank of Australia (RBA) Governor Michele Bullock on Wednesday. Bullock indicated that the central bank is prepared to increase interest rates if the Consumer Price Index (CPI) does not return to the target range of 1%-3%. She also acknowledged that the labor market is easing on several measures, as reported by NCA NewsWire. The US Dollar (USD) struggled after mixed economic data was released in the United States (US), which fueled interest rate cut speculations by the US Federal Reserve (Fed). As per the CME FedWatch Tool, the probability of a Fed rate cut by at least 25 basis points has increased to nearly 70.0%, up from 47.5% a week earlier. The depreciation in the US Treasury yields are putting pressure on the Greenback. Investors await the key US employment data releases on Friday, including the Average Hourly Earnings and Nonfarm Payrolls. Daily Digest Market Movers: Australian Dollar rises due to improved risk sentiment On Wednesday, the ISM US Services PMI soared to 53.8 in May, marking its highest level in nine months and significantly surpassing the forecast of 50.8. In…

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Filed under: News - @ June 6, 2024 4:14 am