The Australian dollar steadied around $0.651 on Thursday, holding its recent gain, as stronger-than-expected trade data supported sentiment. Australia’s trade surplus widened sharply to AUD 3.94 billion in September from a revised AUD 1.11 billion in August, beating forecasts of AUD 3.85 billion. The improvement was driven by a 7.9% jump in exports, led by higher gold shipments as bullion prices surged during the month, while imports increased 1.1% to record levels on higher capital goods. On the policy front, the Reserve Bank’s decision to hold rates at 3.6% in November signaled it may be done easing, as policymakers highlighted persistent inflation risks and limited scope for further rate cuts. However, the central bank’s hawkish stance offered only limited support, with the Aussie under pressure from a broadly stronger greenback as solid US data dampened Fed rate-cut expectations.
