Tomorrow afternoon at 1:30 pm London time the ACFX Bureau of Economic Analysis will announce its latest Goods Trade Balance data.
This data release measures the difference in value between imported and exported goods during the prior month.
The Goods Trade Balance is released on a monthly basis around 30 days after the prior month ends.
With respect to total commerce, the trade in goods accounts for 75% of total trade, furthermore as the Goods of Trade Balance number is released 5 days before the Trade Balance number. The earlier release of the Goods Trade Balance data can, therefore, give an early indication of the more important Trade Balance data.
The Goods Trade Balance data is monitored by traders and investors. The reason for this is the demand for exports and the demand for a currency is linked because foreign importers must pay for goods in US Dollars.
Increasing export demand for US manufactured goods can also have an inflationary effect and, therefore, could be a factor that is taken into account when the FOMC makes interest rate decisions.
The prior release was -62.3 billion. A reduction of the deficit in the trade balance could potentially see the US Dollar appreciate in value. http://www.acfx.net/goods-trade-balance