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According to TD Securities analysts, a higher trade surplus and lower net income deficit should drive the Australia’s current account into surplus for the first time in nearly 50 years to the tune of A$1.7b.

Key Quotes

“We forecast Q2 net exports to increase 0.4%, thanks to strong commodity exports. Q2 GDP puzzle pieces aside we have July retail sales increasing 0.2%/m, placing annual growth at 2.8%. With tax cut proceeds expected to hit bank accounts from 16th July, this poses an upside risk to our forecast.”