FX.co ★ Aussie Dollar Holds Steady Despite Disappointing Trade Data

The Australian dollar held steady around $0.662 on Thursday, maintaining its recent gains as investors digested disappointing trade balance data. Australia's trade surplus narrowed sharply to AUD 1.83 billion in August 2025, the smallest surplus recorded since June 2018 and far below market forecasts of AUD 6.2 billion. This decrease followed a downward revision of July's surplus to AUD 6.61 billion. The decline was primarily due to exports dropping to a three-month low, highlighted by reduced shipments to the United States amid the imposition of new tariffs and a significant fall in gold exports. In contrast, imports surged to a record high, bouncing back after a dip in July. The Australian dollar also received support from a weaker US dollar, influenced by the first US government shutdown in almost seven years, which added to market uncertainties. On the monetary policy front, the Reserve Bank of Australia maintained its cash rate at 3.6% earlier this week. Governor Bullock pointed out that although some components of the Consumer Price Index were slightly higher than anticipated, overall inflation remains under control.