Trade Desk Thoughts - Australian Current Account

Australian Current Account Actual -12.8B, Expected -11.9B, Previous -19.5B

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 36 percent to 12.8 billion, seasonally adjusted. Australia’s net international investments increased by 5.0 billion to $692 billion, while net foreign debt fell by $4.5 billion to $600 billion.

Forex Technical Reaction: The aussie appears to be one of the few pairs not heavily affected by the gaps during the opening of the markets this evening. The pair is currently hovering around the S1 area on the charts.

Written by TheLFB Trade Team, © 2007-2008 LFB Services, LLC. All rights reserved. http://www.TheLFB-Forex.com

TheLFB Risk Disclaimer can be found at http://www.thelfb-forex.com/content.aspx?id=174.

The Copying, Broadcast, Republication or Redistribution of TheLFB Content is Expressly Prohibited Without the Prior Written Consent of LFB Services, LLC.