Aussie trade balance preview – what to expect in AUD/USD?

By FXStreet FXStreet (Guatemala) – AUD/USD continues to tank on a combination of yesterday’s RBA statement, oil continuing to slide on disappointments that there is no end to the supply and outright risk-off markets with the Yen now scoring below the 120 handle again, but making fresh lows since the US session low of 119.67.

RBA turns ‘door-wide-openly’ dovish

Yesterday, the RBA left rates steady at 2.00% as widely expected, but the statement offered an air of caution and the board are leaving the door wide open for further easing ahead should developments in the economy require action.

AUD/USD awaiting the trade balance

We are awaiting the trade balance for today from the Australian economy for yet further clues as to whether the RBA should be more concerned about the outlook and the foreign headwinds that could negatively impacting the Australian economy.

The trade balance is released at 11:30am Syd/9:30am Sing/HK. the consensus is for the trade balance to widen by -2,500mAUD. However, Westpac’s forecast is for the deficit to widen to A$3.3bn Nov deficits were at an already sizeable $2.9bn. The analysts explained, “Imports are expected to decline by 1.6% as a stronger AUD in Dec places downward pressure on …read more

Source:: FX Street