Economists at Crédit Agricole CIB Research analyzes Australia's latest record trade balance. What does it mean for the aussie? The AUD/USD pair is set to trade within a 0.68-0.70 range.

Australia logged a record trade surplus in May

“Australia logged a record trade surplus in May. Australia’s trade surplus surged to nearly AUD16 bn, which is about 50% more than the consensus expectations.”

“Australia’s basic balance of payments remains supported by its strong trade balance and this is an underlying support for the AUD. Portfolio outflows remain a weight on Australia’s balance of payments and the AUD, however, we expect AUD/USD to be trapped between these two opposing forces and to finish Q3 at 0.68 and Q4 at 0.70.”