Australian trade balance data for March

Trade balance -2163mln, the third consecutive improvement in the deficit.

  • expected -2900m, prior -0400mln, revised up from 3410mln
  • Exports of goods and services +4% m/m (s.a)
  • Imports +1% m/m (s.a.)

The jump in exports helping the deficit to come in at a less bad result than expected

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ADDED - Comments from Westpac (in brief):

  • Export earnings did surprise a little to the upside, rising 4.8% whereas Westpac had anticipation a 3.7% rise.
  • As expected metal ores (mostly iron ore) rose but the 7.6% but this was a bit less than we thought given the bounce in the Chinese spot price for iron ore which are up 21% in the month.
  • The big surprise this month was the almost 60% rise in gold exports was worth an additional $659mn in the value of exports. Gold exports are very volatile month to month, they fell 20% in February, and a large correction next month is a genuine possibility.