Australian Current Account Deficit For Third Month
Australian Current Account Actual -6.5B, Expected -7.3B, Previous -9.7B
Release Explanation: This is a nation's total exports of Goods, Services, and Transfers, deducted from its total imports of them. Current Account Balance calculations exclude transactions in Financial assets and liabilities. It is a comprehensive accounting review of a nation's Global trade that includes the Trade Balance in its figures.
A currency will be impacted by this report mainly as a knee-jerk reaction of Institutions re-aligning existing positions. The longer term trend will normally take time to reverse and therefore take time to impact currency valuations.
Trade Desk Thoughts: The current account deficit fell 32 percent for the December quarter of 2008. This is the third straight quarter that the deficit has narrowed. In seasonally adjusted terms, this is expected to add 1.5 percent to growth in the December quarter 2008 volume measures.
Forex Technical Reaction: The Australian dollar weakened slightly after this release, but the move was likely stymied by the upcoming interest rate decision due at 22:30 EST
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