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AU: International Trade in Goods
| Consensus | Consensus Range | Actual | Previous | Revised | |
| Balance | A$3.250B | A$2.0B to A$5.4B | A$5.365B | A$2.238B | A$1.604B |
| Imports - M/M | -3.1% | 3.8% | 3.3% | ||
| Imports - Y/Y | 6.5% | 3.5% | 3.2% | ||
| Exports - M/M | 6.0% | -2.7% | -3.0% | ||
| Exports -Y/Y | 3.1% | -0.9% | -2.3% |
Highlights
Australia's goods trade surplus widened from a revised A$1.604 billion in May to A$5.365 billion in June, below the consensus forecast of A$3.25 billion. In seasonally adjusted terms, the value of exports rose 6.0 percent on the month in June after falling 3.0 percent in May, with exports increasing 3.1 percent on the year after a previous decline percent. Exports of nob-rural goods rose 3.1 percent on the month, partly offset by a fall of 0.1 percent in exports of rural goods. Imports rose 6.5 percent on the month after rising 3.2 percent previously, with year-over-year growth picking up from 3.2 percent to 6.5 percent.
Market Consensus Before Announcement
Trade surplus expected wider at A$3.250 billion in June from A$2.238 billion in May.
Definition
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.
Description
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.