Australian Trade Balance Actual 2.50B, Expected 1.73B Previous 2.11B
Release Explanation: The trade balance figure is simply the difference between the amount of export and imports of Australian goods and services for the reported month with Australia and other foreign trade partners. “Subsequently, when exports are greater than imports, or positive net exports, a trade surplus is created. However, when imports are greater than exports, a deficit is created. Simply put, here, there is more money leaving the country than actually coming in”, Trade Team said. As a result, the report is taken into heavy consideration as it indicates flow of goods and services and stand as one of the biggest components of the Balance of Payments report.
Trade Desk Thoughts: Australia has posted a higher than expected trade balance for the month of March. Analysts were expecting a 1.73B reading when in fact; the country had a surplus of 2.50B. This is mainly due to the fall in goods and services debits, mainly in other goods and capital goods. This is the eighth consecutive month in which the Australian trade balance has been in the black.
Forex Technical Reaction: The Australian dollar weakened significantly in the minutes after the release, and has dropped 30 pips since the start of the Asian session.