The AUD/USD pair is “losing weight” fast on Thursday being influenced by the statistics on Australia’s balance of trade.
On Thursday afternoon, the Australian Dollar is getting significantly weaker against the USD. The current quote for the instrument is 0.7622.
Today’s report showed that the country’s Balance of Trade in January was A$1.3B after being A$3.51B in the previous month and against expectations of A$3.8B.
The major contribution in such weak report was made by the Exports: in January, the indicator lost 3% m/m after adding 5% m/m in December. At the same time, the Imports in the first month of 2017 expanded by 4% m/m after adding 1% m/m in December. The decline of the Exports reading looks quite interesting, because the GDP report in the fourth quarter of 2016 was positive, and the high base effect should have extended to the next month.
The construction sector report was disappointing as well. The Building Permits in Australia in January increased by 1.8% m/m after losing 1.2% m/m the month before. It’s seem good, right? But on YoY, the indicator is still falling, by the end of January the decline was 12%. The decrease in the number of new building approvals may be a strong signal of the decline in the construction sector.
Taken together, this was negative for the Aussie. Probably, these factors may stop influencing the pair decline towards the evening and the market will focus on other drivers.
RoboForex Analytical Department