FXstreet.com (Barcelona) - The Australian trade deficit shrunk to AUD427m in December vs AUD800m expected and AUD2788m in November, with imports down by 6%, "with a big 19% fall in capital goods imports" notes NAB economist Spiros Papadopoulos. Exports also showed positive numbers, rising by 3%, "boosted by gains in iron ore and coal exports" Spiros adds.

Looking at the potential consequences this data may have on the RBA, Mr. Papadopoulos adds: "The smaller deficit will be welcomed, but the fall in capital imports further highlights that domestic investment growth is slowing. With the non-mining sectors also holding back on investment, it’s another sign that the RBA will have to ease further through 2013 to support growth."