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Australian Dollar Rises On Strong Trade Data

The Australian dollar strengthened against other major currencies in the Asian session on Thursday, after data showed that Australia's trade balance rose more than expected in May.

Data from the Australian Bureau of Statistics showed that Australia posted a seasonally adjusted merchandise trade surplus of A$2.471 billion in May. That exceeded forecasts for a surplus of A$1.10 billion following the downwardly revised A$90 million surplus in April.

Exports were up 9.0 percent on month to A$32.781 billion, while imports added 1.0 percent to A$30.310 billion.

Wednesday, the Australian dollar showed mixed trading against its major rivals. While the Australian dollar fell against the U.S. dollar, the yen and the euro, it held steady against the New Zealand and the Canadian dollars.

In the Asian trading, the Australian dollar rose to 1.4903 against the euro and 86.15 against the yen, from yesterday's closing quotes of 1.4928 and 86.11, respectively. If the aussie extends its uptrend, it is likely to find resistance around 1.46 against the euro and 88.00 against the yen.

Against the U.S., the New Zealand and the Canadian dollars, the aussie advanced to 0.7611, 1.0454 and 0.9865 from yesterday's closing quotes of 0.7602, 1.0429 and 0.9851, respectively. The aussie may test resistance around 0.77 against the greenback, 1.07 against the kiwi and 1.00 against the loonie.

In today's events, Swiss CPI data and German construction PMI data, both for June, are due to be released later in the day.

At 6:00 am ET, European Central Bank executive board member Peter Praet is scheduled to participate in International Conference of Commercial Bank Economists (ICCBE) 2017 in Paris.

At 7:30 am ET, European Central Bank's monetary policy meeting accounts of its latest monetary policy meeting is set to be published.

In the New York session, U.S. jobs data for June, trade data for May, U.S. weekly jobless claims for the week ended July 1, U.S. Markit's services PMI for June, U.S. ISM non-manufacturing PMI data for June, U.S. crude oil inventories data, Canada building permits for May, and trade data for May are slated for release.

At 10:00 am ET, Federal Reserve Governor Jerome Powell is expected to deliver a speech titled "The Case for Housing Finance Reform" at the American Enterprise Institute, in Washington DC.

by RTTNews Staff Writer

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