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ANZ analysts notes that Australia’s monthly trade balance continued to show strength, coming in at a AUD7,268m surplus.

Key Quotes

“Underlying this was a 2.9% m/m increase in imports, offset to some extent by a 0.6% m/m gain for exports.”

“Resource exports grew, up 0.9% m/m in July. However, excluding gold, resources were down 3.6% m/m. The decline was largely driven by coal exports, which declined 9.4% for the month. Rural goods and manufacturing exports declined 1.1% and 1.4% respectively.”

“Capital goods imports were down 1.4% m/m, reflecting weakness in civil aircraft imports, which fell 35.8% in July, continuing the 45.8% m/m decline in June. Intermediate goods imports were up 5.1% m/m, led by fuel imports, which increased 13.7% m/m. The pick-up in imports likely reflects the recovery in oil prices in July after the lows in June. Consumption goods imports were up 4.5% m/m after falling 5.1% in June. Car imports, which rose 14.3% m/m, were a significant contributor.”