The Australian Dollar moved up on Thursday, boosted by upbeat trade data and a softer US Dollar. Right now, AUD/USD sits near 0.6500, adding to yesterday’s 0.25% climb.
Fresh numbers from the Australian Bureau of Statistics show Australia’s trade surplus shot up in September, reaching 3,938 million. That’s not just above forecasts of 3,850 million—it’s more than triple August’s 1,111 million. Exports jumped 7.9% compared to the previous month, while imports barely moved, up just 1.1%. Clearly, there’s a stronger demand for Australian goods, and that’s good news for the Aussie Dollar.
It’s not just local news pushing the currency higher. Global markets look more upbeat, and the US Dollar slipped as traders reconsidered the odds of a Federal Reserve rate cut in December. The US Dollar Index fell to around 100.00, even though recent US data showed job growth and steady services activity. Now, investors see a 62% chance of a December rate cut—down from 68% last week, as the Fed plays it safe with Washington’s political mess dragging on.
On top of that, China just announced it’s suspending tariffs on some US farm goods—a move that helps ease trade tensions. Since Australia’s trade is so closely tied to China, which gives the Aussie Dollar even more of a boost.
On the technical side, AUD/USD is hanging just below resistance at 0.6520 and 0.6539. If buyers push it through those levels, the next target looks like 0.6630 in the days ahead.
