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The Australian dollar (AUD) appreciated after China released trade balance data on Thursday. However, AUD/USD came under downward pressure following the release of Australian trade balance data earlier in the Asian session. There appear to be downside risks for AUD/USD as market optimism could rise further following former President Donald Trump’s victory in the US election.
China’s trade surplus widened in October to $95.27 billion year-on-year, beating estimates of $75.1 billion and the previous figure of $81.71 billion. Exports rose 12.7% year-on-year, well above expectations for 5.0% growth and the previous 2.4% growth. Imports, meanwhile, fell 2.3% year-on-year, beating expectations for a 1.5% decline and contrasting with the previous increase of 0.3%.
Australia’s trade surplus fell to $4.609 billion in September, down from expectations of $5.3 billion and August’s $5.284 billion, the Australian Bureau of Statistics reported on Thursday. It was the smallest trade surplus since March as exports fell more than imports.
Traders expect the Federal Reserve (Fed) to cut its benchmark interest rate by 25 basis points at its November meeting on Thursday. There is a 98.1% chance that the Fed will cut interest rates by a quarter of a percentage point in November, CME Group’s FedWatch tool shows, indicating strong expectations for a smaller rate cut this week.
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