Australia's goods trade surplus widened from A$1.825 billion in August to A$3.938 billion in September, close to the consensus forecast of A$3.9 billion. In seasonally adjusted terms, the value of exports rose 7.9 percent on the month after falling 7.8 percent previously, while growth in imports slowed from 3.2 percent to 1.1 percent.

After a drop to A$1.b billion in August on declining gold exports and rising imports of consumer goods, the consensus sees the surplus back up to its trend level in September.

The Goods Trade Balance measures the difference between imports and exports of tangible goods. The level of the international trade balance, as well as changes in exports and imports, indicate trends in foreign trade.

Changes in the level of imports and exports, along with the difference between the two (the trade balance) are a valuable gauge of economic trends here and abroad. While these trade figures can directly impact all financial markets, they primarily affect the value of the Australian dollar in the foreign exchange market. Imports indicate demand for foreign goods while exports show the demand for Australian goods in its major export market China and elsewhere. The currency can be sensitive to changes in the trade balance since a trade imbalance creates greater demand for foreign currencies. The bond market is also sensitive to the risk of importing inflation. A word of caution -- the data are subject to large monthly revisions. Therefore, it can be misleading to form opinions on the basis of one month's data.