Andrew Hanlan, analyst at Westpac, suggests that the Australia’s December outcome of $3.7bn trade surplus was an upside surprise, coming in well above expectations (market median $2.2bn and Westpac $2.8bn).
Key Quotes
“Imports fell by 5.7% in the month, with falls broadly based across the goods segments.”
“Exports disappointed, down 1.6%, with the $0.6bn decline more than explained by a plunge in the notoriously volatile gold shipments, contracting by $1.0bn.”
“For the December quarter, the surplus came in at $8.5bn, a $2.7bn improvement on a $5.8bn surplus for the September quarter.”
“Key to the improved trade position was an increase in the terms of trade, up by around 2.5% we estimate, rising on higher export prices for key commodities.”
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