Australian trade surplus is positive for AUD

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Australia’s trade balance for September came in at A $ 12.243 billion against A $ 12.175 billion and against the previous A $ 15 077 billion).

– Australian Exports (MoM) Sep -6% (est -3%; previous 4%).
– Australian Imports (MoM) Sep -2% (est 1%; prev -1%).

The data are the consequence of the fall in the prices of iron ore which slows down exports (f / c -5%) and of the support of oil prices to imports (f / c + 0.5%). However, the Australian can be reassured that it was better than expected.

Meanwhile, final retail sales came in at -4.4% for the third quarter from 4.6% expected and 0.8% ahead of the quarter, with sales falling due to the coronavirus lockdown. Traders expect sales to pick up as the country emerges from lockdown.

About the trade balance

The trade balance published by the Australian Bureau of Statistics is the difference between the value of its imports and exports of Australian products. Export data can give an important reflection of Australian growth, while imports give an indication of domestic demand. The trade balance provides a first indication of net export performance. If stable demand in exchange for Australian exports is seen, this would turn into positive growth in the trade balance, and this should be positive for the AUD.


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