The Aussie took hits on a narrower Australian trade surplus. Meanwhile, jitters ahead of this weekend’s G7 Summit kept risk-takers in the sidelines.
- Australia’s AIG construction index dips from 55.4 to 54.0 in May
- Australia’s trade surplus narrows down from 1.73B AUD to .098B AUD in April
- Japan’s leading indicators improves from 104.4% to 105.6%
Australia’s trade balance
Data from the Land Down Under printed earlier showed its trade surplus narrowing down from an upwardly revised 1.73B AUD to 0.98B AUD in April. That’s the tightest in four months!
Apparently, exports fell by 2.0% from a month earlier to 34.2B AUD as a decline in coal, coke, and briquettes shipments helped pull down non-rural goods by 2.0%.
Meanwhile, imports barely changed at 33.2B AUD as increase in fuels and lubricants purchases were mostly offset by declines in purchases of consumption goods.
Mixed risk sentiment
The Asian bourses tracked their Wall Street counterparts and priced in hawkish ECB prospects and strong performances by tech companies.
- Nikkei is up by 0.84% to 22,815.1
- A SX 200 is up by 0.31% to 6,072.6
- Hang Seng is up by 0.55% to 31,432.4
- Shanghai index is up by 0.06% to 3,117.017
Commodity prices weren’t on board, however, as some traders stay in the sidelines ahead of this weekend’s G7 Summit in Canada where, if rumors were to be believed, Trump could maintain his hard stances on issues like Iran and global trade.
It also didn’t help that Washington Post cited “four people familiar with White House planning” and said that White House Deputy Chief of Staff Joseph Hagin – who is Trump’s point person in arranging the North Korean nuclear summit – is planning to leave his post. Duhn duhn duhn.
- Gold is up by 0.01% to $1,296.59
- Brent crude oil is down by 0.16% to $75.68
- U.S. WTI is up by 0.05% to $64.99
Major Market Mover(s):
The trade balance report didn’t dent the Aussie too much at the time of the release, but it did help bleed the comdoll at a time when forex players weren’t feeling on taking on higher-yielding currencies.
AUD/USD is down by 17 pips (-0.23%) to .7650
AUD/JPY is down by 34 pips (-0.40%) to 81.15
EUR/AUD is up by 53 pips (+0.35%) to 1.5407
GBP/AUD is up by 56 pips (+0.32%) to 1.7546
AUD/NZD is down by 33 pips (-0.31%) to 1.0867
Watch Out For:
- 5:45 am GMT: Switzerland’s unemployment rate (2.6% expected, 2.7% previous)
- 6:00 am GMT: Germany’s factory orders (0.7% expected, -0.9% previous)
- 6:45 am GMT: France’s trade balance (-5.1B EUR expected, -5.3B EUR previous)
- 7:00 am GMT: Switzerland’s foreign currency reserves
- 7:30 am GMT: U.K.’s Halifax house price index (1.1% expected, -3.1% previous)
- 8:00 am GMT: Italy’s retail sales (0.2% expected, -0.2% previous)
- 9:00 am GMT: No expected from Euro Zone’s 0.4% GDP