AUD/USD lower still on trade balance but…

By FXStreet FXStreet (Guatemala) – AUD/USD is meeting supply on the back of the Australian December trade balance that came much worse-than-expected at-3535m vs -2450m expected and -2906m last.

The data offered the exports at -5% vs 1% last, while imports stood at -1%vs -1% last. This comes in line with the cautionary approach that the RBA have now adopted after “chilling-out” into the close of 2015 over the festive season.

The Aussie tanked after the statement confirmed to markets that the RBA are leaving the door open to possible easing if necessary this year, while they are concerned for headwinds from abroad and while the Australian economy has been performing solidly, it is not immune and the turmoil at the start of the year certainly woke the Bank up out of the chill zone.

For full details on the trade balance see here.

At the same time, however, which is where the “but…” comes in, there was a big jump in building approvals this month after a big slump the prior month. Australian December building permits came at 9.2% m/m vs 4.5% expected and -12.4% last, revised from -12.7%, while the y/y read stood at -2.5% vs 7.2% expected …read more

Source:: FX Street