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.