The Australian dollar held above $0.705, staying near a seven-week high, supported by a weaker US dollar and upbeat domestic trade data. Australia’s balance on goods trade unexpectedly swung to a surplus of A$ 1.9 billion in June from a revised deficit of A$ 2.4 billion in May, as exports of gold and iron rebounded sharply, while imports flattened after a strong run. Attention now turns to the Reserve Bank of Australia’s policy meeting next week, where markets are pricing in virtually no chance of a rate hike after three increases this year, but a hike in November is still about 60% priced in. Meanwhile, the greenback remained under pressure as optimism over a Middle East deal to partially reopen the Strait of Hormuz weighed on oil prices, easing inflation pressures and diminishing expectations for more aggressive Federal Reserve tightening. Iran and Oman agreed to establish a shipping corridor through the strait, strengthening hopes for improved energy supplies from the Middle East.