The May trade balance came in significantly higher than market expectations of $0.05bn (CBA (f): $0.3bn). Following a series of large trade deficits over 2012, Australia’s international trade position has moved back into surplus over 2013. The trade balance data is another indication of the Australian economy’s transition from the mining investment phase to the mining extraction (or production) phase. The production phase will see higher levels of commodity exports over the medium-long term, especially as more LNG projects finish construction. Strong export growth will be positive for Australia’s current account position.
Read the full report: Market Research
Commonwealth Bank