Australia: Trade surplus to widen from $0.86bn to $1.4bn - Westpac

Australia's trade balance has been in surplus in seven of the past eight months and for July, analysts at Westpac expect the surplus to widen from $0.86bn to $1.4bn, an improvement of $550mn.

Key Quotes

“Export earnings are forecast to rise by 0.8%, $250mn. Gains in iron ore (higher prices) and coal (volumes) offset slippage in LNG (disruptions) and gold (off a high base).”

“The import bill declines by an anticipated 1%, $300mn, as prices fall in association with a stronger currency. The Australian dollar made solid gains in the month, up 3% against the US dollar and +2.5% on a TWI weighted basis.”