The Reserve Bank of Australia, which is scheduled to convene next month, is viewed as being unlikely to cut interest rates in the aftermath of the nation's trade deficit being bigger than anticipated. The trade gap during January was $1.06 billion in Australian currency after registering at $688 million during the month prior, according to The Wall Street Journal. Exports fell 1 percent while imports gained 1 percent.
"We suspect that the gradual improvement in exports in the fourth quarter was temporarily interrupted in January due to some natural statistical pullback and adverse weather events," states a note penned by Citi economists, according to The Wall Street Journal. "We do not however view January's decline as the start of a trade-partner based moderation in demand."
The Aussie's losses against the U.S. dollar on Wednesday amounted to 0.2 percent, representing the sharpest fall since February 26.
The trade deficit that the nation revealed for January represents the country's 13th consecutive month of trade deficit, The Wall Street Journal reports.
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