Australia swings to AU$1.93bn trade surplus in June
Exports surged 9.6% month-on-month while imports fell, swinging the trade balance from a AU$2.37bn deficit to a AU$1.93bn surplus.
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Australia recorded a trade surplus of AU$1.929 billion in June, swinging sharply from a revised deficit of AU$2.367 billion the prior month. Economists had expected a deficit of AU$1.1 billion, according to the median forecast in a Bloomberg survey.
Exports rose 9.6% month-on-month, reversing a 6.9% decline in May. Imports fell 0.2%, after a 2.6% increase in the prior period. The Australian Bureau of Statistics released the data Thursday.
The swing was driven by a jump in resource exports, traders said. Iron ore and coal shipments recovered after port maintenance and weather disruptions weighed on May's numbers. LNG exports also picked up, supported by steady Asian demand.
Import weakness reflected a pullback in consumer goods and capital equipment, the data showed. Machinery imports slipped after several months of elevated orders tied to mining and energy projects.
The surplus was the largest since February and puts the trade account back in positive territory after three months of deficits. The Australian dollar held near US$0.6520 after the release, little changed from pre-data levels. The RBA has cited trade flows as a factor in its inflation forecasts, though the central bank's focus remains on services inflation and labour market tightness.
Treasury expects the trade surplus to narrow over the second half of the year as global commodity prices moderate and import demand recovers, according to its pre-budget economic forecasts published in May.
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