Ella 
AUD/USD remained under pressure around the 0.6530 mark on Thursday.
Australia’s trade balance was A$11.321 billion, down from A$11.791 billion in May.
The employment data may convince the Federal Reserve (Fed) to raise interest rates this year.
During the Asian session on Thursday, the AUD/USD continued to fall, above 0.6500. AUD/USD lost momentum for two consecutive days after weak Australian economic data and increased market risk appetite. AUD/USD is currently trading around 0.6532, down 0.1% on the day.
The latest figures from the Australian Bureau of Statistics (ABS) showed Australia’s trade balance was at A$11.321 billion, down slightly from May’s A$11.791 billion. Exports fell 2% as shipments of coal, mineral fuels and metals slowed as Chinese demand for goods fell. However, a 4% drop in imports in May more than offset a drop in exports. Meanwhile, retail sales fell to -0.5% q/q from -0.6% in the previous reading.
Reserve Bank of Australia Governor Philip Lowy said the decision to keep interest rates unchanged gave the Reserve Bank of Australia more time to analyze the impact of rate hikes and the economic outlook. However, more monetary policy tightening may be necessary to ensure inflation returns to target within a reasonable time frame, but this will depend on economic data and changing risk assessments.
Notably, China’s Caixin Services Purchasing Managers’ Index climbed to 54.1 in July from 53.9 previously, beating the consensus estimate of 52.5. Upbeat Chinese economic data could be beneficial for China’s reasonable currency, the Australian dollar (AUD).
On the U.S. dollar front, U.S. ADP employment figures released on Wednesday showed a change of 324,000, higher than the expected 189,000 and lower than the revised 455,000 in June. That figure was higher than the 12-month average. The employment data may convince the Federal Reserve (Fed) to raise interest rates this year, which is good for the dollar and bad for AUD/USD.
Later in the North American session, market participants will take their cues from weekly U.S. jobless claims, unit labor costs and the ISM Services PMI. On Friday, attention will turn to U.S. non-farm payrolls data. The U.S. economy is expected to create 180,000 nonfarm jobs.
