Australia: Trade surplus to remain unchanged at $0.5bn in August – Westpac

Analysts at Westpac notes Australia's trade balance has been in surplus in eight of the past nine months and for August, they expect the trade surplus to remain unchanged at $0.5bn.

Key Quotes

“Export earnings are expected to be little changed, -0.2%, reflecting the balance of countervailing forces. The main plus, the iron ore spot price rose to US$76/t, up from $67. Against that are lower volumes for coal and LNG, as well as a sharp pull-back in rural commodity prices.”

“The import bill declines by an anticipated 0.3%, as prices fall in association with the stronger currency. The Australian dollar made further gains in the month, increasing by 1.6% to 79US¢ and up 0.6% on a TWI weighted basis.”