RBA under pressure to cut rates as trade balance prints another deficit - TradeTheNews

FXStreet (Barcelona) - Reviewing today’s Australian trade balance release, the TradeTheNews Team comments that falling commodity prices and exports are posing threat for the economy, with JP Morgan warning of a potential downgrade in the country’s ratings.

Key Quotes

“AUD/USD was the biggest mover among the dollar majors, falling over 30pips below $0.7580 as Australia trade balance hit its biggest deficit in 5 months.”

“Import growth slowed to 2% and export growth was unchanged at 1%. Shipments of iron ore were little changed and crude oil shipment value actually rose to A$596M v A$553M prior, but coal exports fell sharply to A$3.06B v A$3.33B prior as China regulators reined in the coal industry for its pollutants.”

“Pressure is building for RBA to cut next week, with one survey publishing unanimous forecast by analysts that rates will fall to 2.00% either as of April or May.”

“Late in the session, JPMorgan warned there's a chance Australia will lose its AAA rating because of falling commodity prices if it does not changes its course on the budget.”

“Australia Feb Trade Balance (AUD): -1.3B V -1.3BE (11th consecutive deficit, biggest deficit in 5 months)”