After moving up more than 1%, the Australian dollar is starting to fade

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In short

  1. Strong Australian trade data helped the AUD higher
  2. The RBA keeping rates on hold also supported the currency
  3. Late today, the AUD/USD started to fall to 0.6822 by the end of trade

AUD to USD exchange rates

TimeOpenLowHigh
Today0.6822
In the last week0.67560.6861
In the last month0.67560.6926

The AUD/USD exchange rate managed to move higher on Tuesday and early on Wednesday thanks to a couple of Australian economic events.

First, the trade balance figures came out. It showed a current account surplus for the second month in a row - something that hasn't happened in 46 years. The surplus is largely driven but massive amounts of commodities being exported at relatively high prices.

Next, the RBA held interest rates steady at 0.75%. While this was widely expected, clearly a small part of the market was still betting on a rate cut. When it didn't come through, the AUD popped up higher.

Just as things were looking strong for the Australian dollar, it started to fade towards the end of Wednesday and kept falling after local markets closed.

Up Next

It's a busy week both locally and abroad. In Australia, all eyes will be on the RBA interest rate meeting, decision and statement on Tuesday.
Overseas, a series of manufacturing data in China and the US should show what impact the ongoing trade war is having.
 

CountryDayEvent
ChinaMondayCaixin China Manufacturing PMI
USAMondayInstitute for Supply Management (ISM)
AustraliaTuesdayRBA Interest Rate Decision
AustraliaWednesdayGross Domestic Product (GDP)
EurozoneThursdayGross Domestic Product (GDP)
USAFridayNon Farm Payrolls