Asia Recap: Setback in AUD after dreadful Aus trade balance

By FXstreet.com | Updated July 30, 2014 AAA

FXStreet (Bali) - After being the best performing currency on Tuesday, the Aussie offered its worst version today in Asia, following an surprisingly high Australian trade deficit, which came at -$1.911 billion vs expectations for a $200 million deficit.

After a firm open circa 0.95, the AUD/USD slid slowly in a correction fashion up until the time when the Australian trade data was published, which sent the pair to test the 0.9450 old-resistance-turned-support before some buying interest came back to the market.

As Westpac notes: ""Sharp fall in export earnings and … a sizeable downward revision to the April estimate. Exports surprised, declining by 4.6%, down $1,300mn. We had expected exports to fall by 1% in the month. The detail reveals that exports of metal ores dropped some $760mn – we had expected a fall of $480mn. The ABS included a negative adjustment of $449mn to iron ore export earnings, not anticipated."

The Japanese Yen, meanwhile, saw a slow grind lower throughout Asia, with the Nikkei 225, up 0.5% ahead of the close, buoying all Yen crosses and allowing USD/JPY to make a new week high of 101.65. Meanwhile, the NZD/USD, extended its range below 0.88, but pressures are rising amid falling dairy prices in New Zealand.

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