Aussie Strong After Trade Surplus Widens Beyond Expectations

The Australian dollar was strong today after Australia’s trade surplus rose more than analysts were expecting. But, perhaps, the bigger contributor to the Aussie’s strength was the positive general sentiment on markets. While optimism was not reigning on the Forex market as strongly as on the stock market, with all stock indices logging substantial gains both yesterdays and today, most riskier currencies managed to rise during Thursday’s trading session.
The Australian Bureau of Statistics reported that the trade balance registered a seasonally adjusted surplus of A$5.63 billion in September, up from $2.62 billion in August. That was a surprise to economists, who were expecting just a mild increase to $3.7 billion. Exports rose by 4%, while imports fell by 6%.
But any macroeconomic report released this week will likely be overshadowed by the presidential race in the United States. Currently, it looks like Democratic candidate Joe Biden is in the lead but this year’s US election will likely be the tightest in history. But even when the results become clear, it will likely not be an end as the incumbent president and Republican candidate Donald Trump promised to challenge the voting outcome in the court if he loses the election. In fact, his reelection campaign has already launched legal challenges in several states.
AUD/USD gained from 0.7175 to 0.7217 as of 10:48 GMT today, bouncing from the daily low of 0.7145. AUD/JPY was up from 74.99 to 75.19, rebounding from the session minimum of 74.56. EUR/AUD was up from 1.6327 to 1.6355.
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