• April’s trade balance was a modest $28 million surplus after posting upwardly revised surpluses in February and March.
• Exports of goods and services fell by 1%to $25.42bn, while imports rose by 1% to $25.39bn.
• In April, rural exports rose 2% driven by rises in meat and other rural goods exports, which more than offset a slide in wheat exports. Surging iron ore export volumes offset flat prices. But coal exports fell 5.3%, despite rising volumes.
• In the months and quarters ahead, iron ore and coal volumes are likely to track higher till as major export markets like China, Japan and South Korea pick up economic momentum and Australian production expands further.
• Moreover the recent 10% slide in the AUD/USD from mid-April highs of USD1.0545 to USD0.9488 and the a8¼% drop in the AUD TWI (at the time of writing) will help further boost Australian exports in the coming period.
Read the full report: Market Research
Commonwealth Bank