Australian Dollar Gains on Trade Balance & China’s Data

The Australian dollar gained today as the nation’s trade balance came out better than analysts have predicted. Macroeconomic data from China was helpful too.

The Australian trade balance demonstrated a deficit of A$925 million in November. While it was an increase from the October’s A$877 million, it was still smaller than the predicted value of A$1,590 million. The HSBC Services Purchasing Managers’ Index rose from 53.0 in November to 53.4 in December.

Despite the current rally, there are still plenty of factors that may drive the Aussie back into decline. Concerns about the political situation in Greece, the drop of commodity prices and prospects for monetary tightening in the United States — all these are detrimental to the Australian currency’s performance.

AUD/USD advanced from 0.8081 to 0.8123 and AUD/JPY gained from 96.68 to 96.88 as of 2:26 GMT today. EUR/AUD dropped from 1.4759 to 1.4706.

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