The report out by the Australian Bureau of Statistics this morning gave traders the impression of a country facing significant shortfalls in its export capabilities. Australia has been operating on a trade surplus consistently since mid-2010, with the exception of April 2011 data. It seems many think the nation is approaching another deficit as the abnormally high Australian dollar (AUD) is expected to gouge exports.
The data was anticipated to reveal a surplus of roughly A$1.91B, up from last month’s A$1.82B. With today’s report beating last month’s reading with a A$1.83B, it seems to have diminished some traders’ appetite for the AUD, but oddly considering it was better than the previous month’s figure. Market expectations were priced in ahead of time, making the better-than-previous month’s data serve as a negative when it should have been otherwise.
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Greg Holden is the Chief Market Analyst at ForexYard. Greg uses his detailed knowledge of fundamental and technical analysis to provide some of the leading market forecasts in the forex world today. A guest lecturer at forex symposiums and Chief Editor of ForexYard's analysis center, Greg brings highly detailed and easy-to-use market analyses to his clientele. He has been published on ForexYard's Trading Blog and affiliate websites. Greg holds degrees in Political Science and Economics from Missouri State University, as well as a Masters degree in Middle Eastern History.
