The Australian dollar has shot up to 72 cents against the US dollar, on the back of positive news from the Australian Bureau of Statistics (ABS).
It has now recovered to the position it was in a month ago on 2 October:
Commodities drives growth in exports
According to the ABS, Australia now has a trade surplus of $3.017 billion:
This is a much stronger result than the expectation of $1.8 billion.
The driving force behind the significant improvement is the resources sector. Metal ores and minerals, which are largely iron ore driven, improved by $551 million from a month before.
LNG (Liquefied Natural Gas) exports also rose by $270 million — now the highest level on record.
Coal fell off by $141 million from a month before, but this was offset by $33 million increases for rural goods and $96 million for service exports.
This is now the highest level of exports ever recorded and the third largest surplus ever.
Where does the Aussie dollar go from here?
Despite the positive news, the Aussie dollar faces some headwinds and has been trading down from a high of 81 cents on 28 January.
Here is its year-long chart for reference:
Things that could affect the Aussie dollar going forward:
A few things to consider if you’re a FOREX trader.
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