Forex

AUD/USD: Moderately Bid Figure Near 0.7055

AUD-USD-Moderately-Bid-Figure-Near-0.7055

AUD/USD maintains its bid value above 0.7050 even after the report released by Australian officials at 01:30 GMT indicating the sharp decline in the trade surplus.

The nation’s import in August dropped 7% following the surge of 7% in July. While exports in August declined by 2%, having fallen in July by 4%. The trade surplus dropped from AUD 4,607 million to AUD 4,294 million.

The visible drop in inbound shipments reflects a sharp decline in domestic demand. At the same time, the progressive monthly fall in outbound shipments reflects the fragile demand situation in the world economy.

The figures came a day after retail sales data for August indicated a clear drop of 4.2% in consumer spending.

As such, the pair AUD/USD is probable to have a hard time outlining a powerful recovery rally. The AUS/USD surged from value 0.7042 to 0.7062 forward of the business data, having marked a straight two month low on Tuesday with value 0.7016. The pair is trading at 0.7055 at press time.

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