The Australian Dollar moved “into the black”. Overview for 06.10.2022

The Australian Dollar reached stability against the USD on Thursday. The current quote for the instrument is 0.6534.

The Aussie had difficult times handling the RBA’s decision to raise the benchmark interest rate below market expectations. The next thing that put pressure on the Australian currency was a local recovery of the “greenback”. However, these reasons are no longer actual.

The statistics published today showed that the Australian Trade Balance dropped to AUD$8.32 billion in June against the expected reading of AUD$10.0 billion. The components of the report show that the Export gained 2.6% after losing 9.9% the month before, while the Import went from 5.2% to 4.5%.

Globally, Australia could have enhanced its standing on the world economic stage by increasing the production of coal and other energy resources. Australia already did this in the past, but about ten years ago the country started to restructure and diversify its economy. As a result, coal mining was no longer the key income source for the budget.

Nowadays, demand for alternative sources of energy is increasing. Possibly, Australia might expand its share in this market. However, if it happens, the AUD might get more volatile due to the fluctuations in energy prices.