Australia's Trade Balance: AUD +8.025 bn (expected AUD +9bn), bearish for AUD
|Australia's May balance goods and services data arrived as follows:
- A$+8,025 mln, s/adj (Reuters poll: A$+9,000 mln).
- Australia May goods/services exports -4 pct MoM, seasonally adjusted.
- Australia May goods/services imports -6 pct MoM seasonally adjusted.
AUD/USD, which has been in an upside burst ahead of the data of 10 pips, is starting to come off as the data misses expectations.
AUD/USD trades at 0.6923 moments after the data release, higher by 0.12% on the day at the time of writing and holding above the 0.6920 rsupport.
AUD/USD will remain under the spell of global equity markets, while the crosses will move more closely to fundamentals,
analysts at ANZ Bank argued.
May key points
Balance on goods and services
In seasonally adjusted terms, the balance on goods and services was a surplus of $8,025m in May 2020, an increase of $195m on the surplus in April 2020.
Credits (exports of goods and services)
In seasonally adjusted terms, goods and services credits fell $1,604m (4%) to $35,742m. Non-rural goods fell $1,080m (4%), rural goods fell $404m (10%) and non-monetary gold fell $219m (12%). Net exports of goods under merchanting remained steady at $45m. Services credits rose $99m (2%).
Debits (imports of goods and services)
In seasonally adjusted terms, goods and services debits fell $1,799m (6%) to $27,717m. Consumption goods fell $1,233m (14%), intermediate and other merchandise goods fell $821m (8%) and capital goods fell $412m (7%). Non-monetary gold rose $710m (113%). Services debits fell $43m (1%).
Description of the Australian Bureau of Statistic
The trade balance released by the Australian Bureau of Statistics is the difference in the value of its imports and exports of Australian goods. Export data can give an important reflection of Australian growth, while imports provide an indication of domestic demand. Trade Balance gives an early indication of the net export performance. If a steady demand in exchange for Australian exports is seen, that would turn into a positive growth in the trade balance, and that should be positive for the AUD.
Review Alex Nekritin's Article - Trading the Aussie with Australia Trade Balance
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