Published: 2024-01-11T05:27:45.000Z
AUD/USD flows: Stronger Trade Balance Shadowed by Falling Import
FX Analyst
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Australian December trade data: Exports +1.7% m/m and Imports -7.9%
PBoC Continue to Fix the Yuan Significantly Stronger than Estimate
The December m/m Australian trade balance beat estimate of 7500mn AUD strongly at 11437mn with exports rising 1.7% and Imports dropping 7.9%. The huge beat in headline would be welcoming yet the slump in import may signal the domestic demand of Australians has finally reached a flex point. With household saving ratios closer to zero, we should be seeing a further drop in import in the coming months. However, what really keep the Aussie upbeat on Thursday's Asia session is positive regional risk sentiment, solid commodity price and PBoC once again fixed the onshore Yuan rate to be much stronger than estimate.
AUD/USD is trading 0.3% higher at 0.6720.