AUD/USD: Australian Dollar Struggles For Direction

The Australian dollar managed to eek out a gain versus the US dollar on Wednesday. The pair closed 0.07% higher at US$0.6876. The Australian dollar pushed higher early on in the European session on Thursday, reaching a peak of US$0.6881. However, has since pared its gains and is trading flat versus its US counterpart at the time of writing.

The Australian dollar struggled for direction on in trading on Thursday amid mixed macro-economic data releases. Following President Trump’s speech in the previous session US – Iran tensions have eased allowing investors to turn their attention back to the economic calendar.

Data from the Australian Bureau of Statistics showed that the Australian trade surplus widened to AUD$5.8 billion from AUD$4.5 billion in October. This was short of analysts’ expectations of AUD$5.9 billion. The improvement in the trade position has been largely owing to resources exports and a weaker Australian dollar.

Data from China was softer with consumer prices inflation remaining steady at 4.5% year on year, instead of ticking higher to 4.7% as analysts forecast. Whilst a widening trade surplus is positive for the Australian dollar, weak inflation in China, Australia’s principal trading partner is negative. As a result, the Aussie dollar is trading relatively flat.

Looking ahead, Australian service sector data could drive movement in the Aussie dollar heading into Friday.

US Dollar Investors Look To NFP

Volatility in the US dollar has calmed following the ebbing of tensions in the Middle East. The dollar traded broadly higher versus its peers on Wednesday, in the wake of the missile attacks from Iran and as President Trump collaborated in de-escalating the tense situation.

US ADP private payroll data also under pinned the greenback with 202,000 jobs created in te private sector in December, well ahead of the 160,000 forecast. Last month’s figure was also revised higher from 67,000 to 124,000. This is the latest sign that the US labour market is looking healthy. Given the strong correlation between the US non-farm payroll and the ADP report, the data bodes well for tomorrow’s US labour department’s job report the non-farm payroll.


What do these figures mean?
When measuring the value of a pair of currencies, one set equals 1 unit and the other shows the current equivalent. As the market moves, the amount will vary from minute to minute.

For example, it could be written:

1 USD = 0.6784 AUD

Here, $1 is equivalent to approximately A$0.67. This specifically measures the US dollar’s worth against the Australian dollar. If the Aussie dollar amount increases in this pairing, it’s positive for the US dollar.

Or, if you were looking at it the other way around:

1 AUD = 1.4739 USD

In this example, A$1 is equivalent to approximately $1.47. This measures the Australian dollar’s worth versus the US Dollar. If the US dollar number gets larger, it’s good news for the Aussie dollar. is a news site only and not a currency trading platform. is a site operated by TransferWise Inc. (“We”, “Us”), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on do not represent our views.