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2 Jul 2014
AUD weaker on poor data - BTMU
FXStreet (Barcelona) - Derek Halpenny, European Head of Currency Strategy at the Bank of Tokyo Mitsubishi UFJ, observes the weakness around the Aussie dollar post-trade figures.
Key Quotes
"The biggest movers in the Asian trading session today were the Australia and New Zealand dollars with AUD/USD knocked lower by a much wider than expected trade deficit. The trade data highlighted the fact that Australia’s terms of trade is worsening and if the AUD/USD rate continues to advance, this situation may get notably worse."
"Exports fell by 5% m/m in May, the worst performance since January 2012. That resulted in the overall trade deficit coming in at AUD 1,911mn versus a market consensus of AUD 200mn."
"Metal ores and minerals exports fell 9%. The RBA in its statement this week seemed less concerned about foreign exchange rates but there are clear risks at these levels that the Australian dollar starts to struggle with commodity prices still so weak."
Key Quotes
"The biggest movers in the Asian trading session today were the Australia and New Zealand dollars with AUD/USD knocked lower by a much wider than expected trade deficit. The trade data highlighted the fact that Australia’s terms of trade is worsening and if the AUD/USD rate continues to advance, this situation may get notably worse."
"Exports fell by 5% m/m in May, the worst performance since January 2012. That resulted in the overall trade deficit coming in at AUD 1,911mn versus a market consensus of AUD 200mn."
"Metal ores and minerals exports fell 9%. The RBA in its statement this week seemed less concerned about foreign exchange rates but there are clear risks at these levels that the Australian dollar starts to struggle with commodity prices still so weak."