Forex
Home›Forex›Major Pairs›AUD/USD holds near 0.7210 after China trade balance da…
AUD/USD holds near 0.7210 after China trade balance data
China’s August trade surplus was about $119.1 billion, while AUD sentiment weakened as Westpac consumer confidence fell 5.2% in September.
AUD/USD paused after a four-day winning streak and traded around 0.7210 during Tuesday’s Asian session, holding gains after China’s trade balance release, according to FXStreet.
China’s trade balance in USD terms came in at $119.09 billion for August, roughly matching $119.1 billion estimates, with exports up 25.0% year over year, while imports rose 28.2% year over year, slower than expectations.
Despite the mixed external backdrop, the Australian dollar faced additional pressure from a drop in domestic consumer sentiment. The Westpac Consumer Confidence index declined 5.2% to 84.4 in September, with the report citing concerns that a weaker housing outlook is weighing on homeowners, nearly two-thirds of consumers expecting rising mortgage rates, and job insecurity denting confidence.
FXStreet also pointed to support for the US dollar, noting that markets are pricing in more than a 60% chance of a Federal Reserve rate hike in September after stronger-than-expected August US jobs data. The next catalysts are upcoming US Producer Price Index and Consumer Price Index inflation reports for further clues on monetary policy.