Aussie Dollar Holds Steady Despite Disappointing Trade Data

The Australian dollar remained steady to around $0.662 on Thursday, holding its recent gains, as investors assessed disappointing trade balance figures.

Australia’s trade surplus plunged to AUD 1.83 billion in August 2025, the smallest since June 2018 and well below market expectations of AUD 6.2 billion, from a downwardly revised AUD 6.61 billion in July.

The sharp fall was driven by exports dropping to a three-month low, led by weaker shipments to the US as newly imposed tariffs took effect and a steep decline in gold exports.

Meanwhile, imports rebounded to a record high after falling in July.

The Aussie also found support from a weaker US dollar as the US government shutdown, the first in nearly seven years, fueled market uncertainty.

On the policy front, the Reserve Bank of Australia kept its cash rate at 3.6% earlier this week, with Governor Bullock noting that while some CPI components were slightly higher than expected, inflation remains contained.