AUD/USD, NZD/USD, and USD/JPY: Trade Uncertainty and Economic Data Shape Trends

Australian Dollar Faces Risks from Weak Trade Data and US-China Tensions

The AUD/USD pair faces downward pressure due to weak trade balance data and rising US-China trade tensions. The chart below illustrates Australia’s trade balance data. The trade surplus dropped to 5,085M in December, missing the expected 7,000M and declining from 6,792M in the previous month. Additionally, exports increased by only 1.1% month-over-month, a sharp slowdown from November’s 4.2% rise. Meanwhile, imports surged 5.9% month-over-month, significantly higher than the previous 1.4% gain. This imbalance pressures the Australian economy and weakens investor confidence in the Australian Dollar.