Australia’s second quarter (Q2) trade surplus was almost A$20bn, a record high equating to 4% of GDP and a key driver of economic growth in the quarter, as noted by analysts at Westpac.
Today, we have the first reading for Q3, where another very large surplus was expected for July – (AUD bullish). The data arrived as follows:
AUD 7.268bn (vs the expected AUD7bn surplus – AUD bullish)
- But, prior was AUD 8.036bn surplus (Not so bullish).
About the trade balance
The trade balance released by the Australian Bureau of Statistics is the difference in the value of its imports and exports of Australian goods. Export data can give an important reflection of Australian growth, while imports provide an indication of domestic demand. Trade Balance gives an early indication of the net export performance. If a steady demand in exchange for Australian exports is seen, that would turn into a positive growth in the trade balance, and that should be positive for the AUD.
Review Alex Nekritin’s Article – Trading the Aussie with Australia Trade Balance
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