Recording another impressive trade surplus in March, accounts released by the Australian Bureau of Statistics yesterday showed Australia’s trade surplus rose to $1.527 billion in seasonally adjusted terms. Comfortably exceeding expectation, additional positivity was thrown into the mix domestically following the release of numbers which revealed dwelling approvals rose by 0.2 percent in March.
Noting the Australian dollar has now settled at a much lower tier following the aggressive sell signs which materialized last week, trading ranges yesterday of 0.7485-0.7542 were mainly in line with what witnessed during Wednesday’s session. In looking for an essential weekly close now above the 75 US cents barrier, it appears topside progress will remain capped for the time being in the absence of any weighty greenback moves.
Opening marginally stronger versus its US counterpart at a rate of 0.7532, investors will be keeping close tabs on today’s monetary policy report from the RBA should policymakers provide deeper context behind their decision on Tuesday to keep interest rates on hold.