The post Australia’s Trade Surplus narrows to 5,773M MoM in May vs. 6,678M expected appeared on BitcoinEthereumNews.com.

Australia’s trade surplus narrowed to 5,773M MoM in May versus 6,678M expected and 6,548M in the previous reading, according to the latest Aussie foreign trade data published by the Australian Bureau of Statistics on Thursday. Further details reveal that Australia’s May Goods/Services Exports reprint 2.8% figures on a monthly basis versus -2.5% prior. The nation’s Goods/Services Imports rose 3.9% in May MoM versus -7.2% prior.  Market reaction At the press time, the AUD/USD pair is up 0.16% on the day to trade at 0.6716. Australian Dollar FAQs One of the most significant factors for the Australian Dollar (AUD) is the level of interest rates set by the Reserve Bank of Australia (RBA). Because Australia is a resource-rich country another key driver is the price of its biggest export, Iron Ore. The health of the Chinese economy, its largest trading partner, is a factor, as well as inflation in Australia, its growth rate and Trade Balance. Market sentiment – whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) – is also a factor, with risk-on positive for AUD. The Reserve Bank of Australia (RBA) influences the Australian Dollar (AUD) by setting the level of interest rates that Australian banks can lend to each other. This influences the level of interest rates in the economy as a whole. The main goal of the RBA is to maintain a stable inflation rate of 2-3% by adjusting interest rates up or down. Relatively high interest rates compared to other major central banks support the AUD, and the opposite for relatively low. The RBA can also use quantitative easing and tightening to influence credit conditions, with the former AUD-negative and the latter AUD-positive. China is Australia’s largest trading partner so the health of the Chinese economy is a major influence on the value of the Australian Dollar (AUD).…

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Filed under: News - @ July 4, 2024 4:10 am