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2 Oct 2013
AUD/USD falls on higher than expected August Aussie trade deficit
FXstreet.com (London) - The Aussie dollar lost ground to the US dollar, falling from its USD1.1425 one-week high on the release of higher than expected trade deficit numbers for August.
The Australian trade deficit in August was AUD815m, compared to AUD1.38 billion in July. It had been expected to fall further, to a consensus AUD400m.
The Reserve Bank of Australia yesterday held the central bank’s historic low 2.5 percent benchmark rate. RBA governor Glenn Stevens used the same language as his fellow dovish central bankers at the Fed and the Bank of England, saying that growth was not strong enough to consider raising the rate.
This was reinforced when a report showed that building approvals had climbed less than forecast. Permits granted to build or renovate houses and apartments rose by 7.7 percent in August compared to 2012, a significant miss from a consensus of 12.8 percent.
With inflation low, there remains plenty of slack in the economy to give the RBA room to cut further.
AUD/USD fell by 0.31 percent to USD0.9362.
The Australian trade deficit in August was AUD815m, compared to AUD1.38 billion in July. It had been expected to fall further, to a consensus AUD400m.
The Reserve Bank of Australia yesterday held the central bank’s historic low 2.5 percent benchmark rate. RBA governor Glenn Stevens used the same language as his fellow dovish central bankers at the Fed and the Bank of England, saying that growth was not strong enough to consider raising the rate.
This was reinforced when a report showed that building approvals had climbed less than forecast. Permits granted to build or renovate houses and apartments rose by 7.7 percent in August compared to 2012, a significant miss from a consensus of 12.8 percent.
With inflation low, there remains plenty of slack in the economy to give the RBA room to cut further.
AUD/USD fell by 0.31 percent to USD0.9362.