Introduction
The AUD/USD has been on an upward trend for the third consecutive day, despite disappointing Chinese trade data for March and softer Australian consumer inflation expectations for April. However, the positive employment data release from Australia may have contributed to the pair’s steady run-up.
AUD/USD Steady despite Weak Chinese Trade Data
China Trade Numbers for March
China’s trade data for March did not show an impressive outcome, yet the AUD/USD remained firm. Exports dropped by 3.5% YoY while imports rose by 6.3% YoY, leading to a trade surplus of $13.8 billion. Despite these weak figures, the AUD/USD pair maintained mild gains around 0.6710 by the press time.
Softer Australia Consumer Inflation Expectations for April
The latest survey from Melbourne Institute showed that Australian consumer inflation expectations for April declined to 3.2% from 3.4% in March. This weaker inflation outlook may signal a lower likelihood of a near-term interest rate hike, which could impact the value of the AUD. However, this news did not appear to have a significant effect on the AUD/USD pair.
Positive Australian Employment Data
The reason for the AUD/USD pair’s steady run-up could be linked to the positive employment data release from Australia. According to the Australian Bureau of Statistics, the unemployment rate declined to 5.6% in March, down from 5.8% in February. The economy added 70,700 jobs in March, which was well above market expectations of 35,000 jobs. The strong employment data may have contributed to the AUD/USD pair’s upward trend.
Conclusion
In conclusion, despite weak Chinese trade numbers and softer Australian consumer inflation expectations, the AUD/USD remained steady due to positive employment data. The weaker inflation outlook may signal a lower likelihood of a near-term interest rate hike, but the positive employment data may have offset this news. It will be interesting to see how these factors continue to influence the AUD/USD pair in the coming days and weeks.
