The Australian dollar strengthened against the other major currencies in the Asian session on Tuesday following the release of better than expected trade and retail sales data for June.

Data from the Australian Bureau of Statistics showed that Australia posted a seasonally adjusted merchandise trade deficit of A$2.933 billion in June, expanding 10 percent on month. That was smaller than the A$3.00 billion shortfall expected by economists and follows the upwardly revised A$2.677 billion deficit in May. Exports were up A$830 million or 3.0 percent on month to A$26.348 billion. While, imports climbed A$1.086 billion or 4.0 percent to A$29.281 billion.

Also, the ABS said that the total value of retail sales in Australia was up a seasonally adjusted 0.7 percent on month in June, coming in at A$24.346 billion. That beat forecasts for an increase of 0.4 percent, which would have been unchanged from the May reading following an upward revision from 0.3 percent.

Investors are treading cautiously ahead of the Reserve Bank of Australia's interest rate decision due in about half an hour. Economists expect the bank to hold rates at 2.00 percent.

Meanwhile, Australia's stock market traded higher. The benchmark S&P/ASX 200 index is currently up 41.70 points or 0.73 percent at 5,721. The broader All Ordinaries index is also currently up 39.70 points or 0.70 percent at 5,704.

Monday, the Australian dollar showed mixed trading against its major rivals. While the aussie rose against the New Zealand and the Canadian dollars, it held steady against the U.S. dollar, the yen and the euro.

In the Asian trading today, the Australian dollar rose to nearly a 2-week high of 0.9611 against the Canadian dollar, from yesterday's closing value of 0.9581. The aussie may now test resistance near the 0.96 region.

Against the U.S. dollar, the yen and the euro, the aussie advanced to 0.7299, 90.55 and 1.4988 from yesterday's closing quotes of 0.7283, 90.34 and 1.5028, respectively. If the aussie extends its uptrend, it is likely to find resistance around 0.74 against the greenback, 92.50 against the yen and 1.47 against the euro.

The aussie edged up to 1.1116 against the NZ dollar, from yesterday's closing value of 1.1089. This may be compared to an early near 2-week high of 1.1121. On the upside, 1.12 is seen as the next resistance level for the aussie.

Looking ahead, the Reserve Bank of Australia's interest rate decision is due at 12:30 am ET.

In the European session, U.K. Markit/CIPS construction PMI for July and Eurozone PPI for June are due to be released.

In the New York session, U.S. factory orders for June and Canada manufacturing PMI for July are slated for release.

AUD vs US Dollar (FX:AUDUSD)
Forex Chart
From Aug 2024 to Sep 2024 Click Here for more AUD vs US Dollar Charts.
AUD vs US Dollar (FX:AUDUSD)
Forex Chart
From Sep 2023 to Sep 2024 Click Here for more AUD vs US Dollar Charts.