Australian dollar got cheaper on Friday due to combined trading results of China. China recorded imports below expectations, which affected demand outlook in Australia, the key trade partner.
The AUD to USD exchange rate decreased 0.11% to 0.7883. USD to JPY rate lost 0.05% coming to 111.21.
Beijing unveiled December trade highlights – exports hiked 10.9% (forecast – 9.1%) and imports – 4.5% (13.0%). Thus, trade balance surplus amounted to $54.69 billion ($37 billion).
US dollar index posted a 0.11% decline to 91.56.
With depressing US economic performance data, the dollar weakened vs other currencies on Thursday. Specifically, it was reported that producer price in the USA had unexpectedly gone down 0.1% in December for the first time over 18 months, while the number of applications for unemployment benefits, on the contrary, improved by 11,000 to 261,000 last week.
The European currency improved on the back of the European Central Bank minutes. In particular, the report made it clear that the officials were ready to think over a step-by-step revision of the monetary guideline since early 2018.
Investors might consider any changes to the European Central Bank's plans as a sign of possible reduction of the bond-buying program.