Australia: Trade Balance shrinks in June – TDS

Analysts at TDS note that Australia’s June trade balance surplus shrunk from $A2.02b (revised down) to +$A856m (TD and mkt $A1.8b) with imports unexpectedly +2% while exports fell -1% (as expected). 

Key Quotes

“With commodity prices buoyant again and the one-off imports drop out, we expect another decent surplus next month.  Capital imports jumped by +13.2% via telcos and aircraft.  We pencil in a deterioration in the Q2 current account deficit from -1% to -2% of GDP.  Net exports shaping up to be neutral for growth as the capital import pop will show up as business investment.”