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AU: International Trade in Goods
| Consensus | Consensus Range | Actual | Previous | Revised | |
| Balance | A$1.6B | A$-3.0B to A$3.0B | A$1.791B | A$-1.841B | A$-1.024B |
| Imports - M/M | 0.8% | 14.1% | 12.2% | ||
| Exports - M/M | 7.2% | -2.7% | -2.5% |
Highlights
Exports surge by 7.2 percent and imports are up only 0.8 percent on the month in April, leaving the trade surplus slightly wider than expected at A$1.791 billion versus a revised deficit of A$1.024 billion in March.
The exports increase was led by metal ores and minerals, as expected. Import values were boosted by rising fuel prices.
Market Consensus Before Announcement
Rising commodity exports are seen helping to restore the trade balance to a surplus of A$1.6 billion in April after a jump in imports resulted in a A$1.8 billion deficit in March.
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.