AUD/USD scales above 0.7180 on upbeat China trade data By Sagar_Dua24 AUDUSD China TradeBalance Inflation RBA
Aussie bulls are underperforming despite the 50 bps rate hike announcement by the RBA.AUD/USD
pair has attempted to overstep 0.7180 as China’s National Bureau of Statistics has reported better-than-expected trade data for year till date . In dollar-denominated terms, the imports have improved by 4.1% while exports have jumped firmly by 16.9%. The USD Trade Balance has landed at $78.76B, much higher than the estimates of 58B and the prior print of 51.12B.
Aussie bulls are underperforming against the greenback despite the announcement of a bumper rate hike by the Reserve Bank of Australia . The RBA elevated its Official Cash Rate by 50 basis points . As per the market consensus, a rate hike by 25 bps rate was expected.of a 25 bps rate hike was higher inflation and a weak employment situation. Last week, the Australian economy reported the Employment Change of 4k i.e.
in the economy. Therefore, a rate hike by a quarter to a percent was more optimal. Now, extreme quantitative restricting measures may result in inefficiency in the employment generation process. On the dollar front, the US dollar index is struggling to sustain above 102.60. Odds are favoring more upside in the DXY as investors are awaiting the release of Friday’s US inflation. A preliminary estimate for the annual inflation rate is 8.3% while the core