The Australian dollar held steady around $0.651 on Thursday, holding onto recent gains after the September trade surplus widened sharply to AUD 3.94 billion (vs. August's revised AUD 1.11 billion), beating estimates of AUD 3.85 billion. The main boost came from exports rising 7.9%, led by a surge in bullion shipments as prices strengthened; while imports rose 1.1% to a new record due to an increase in capital goods.

On the policy front, the Reserve Bank of Australia (RBA) held interest rates at 3.6% in November and reiterated its cautious stance. Policymakers highlighted persistent inflation risks and limited room for rate cuts, leading the market to price in only a small easing opportunity. This tone helped support the AUD, but the effect was modest.

At the same time, sentiment towards the greenback remained strong as solid US data reduced expectations of an imminent Fed rate cut. As a result, the AUD remains weighed down by the stronger dollar, keeping the commodity currency's rally at bay despite support from the improving trade balance. (az)

Source: Newsmaker.id