Terms of Trade spikes higher in QIII 2013

The Terms of Trade surged 7.5%, much higher than our and market expectations. From our perspective, the stronger thanexpected result largely reflected higher than expected export prices. Strong global commodity prices remain a key supportof the Terms of Trade in QIII. However, the export volumes story was not quite as positive, with a decline in dairy and meatexports driving a modest decline in export volumes over the quarter.

Read the full report: Economic Research

 

Commonwealth Bank