Australia’s June month trade balance beat the forecast, Aussie up

As per the Australian Bureau of Statistics (ABS) report, June month trade grew 8,036M versus 6,000M expectations. Details suggest Exports weakening to 1.0% from 4.0% prior while imports declining to -4.0% versus +1.0% earlier.

In reaction to the data, AUD/USD surges to 0.6786 after the publish.

Key points from the ABS report are as follows:

Balance on goods and services

In trend terms, the balance on goods and services was a surplus of $7,032m in June 2019, an increase of $355m on the surplus in May 2019.

In seasonally adjusted terms, the balance on goods and services was a surplus of $8,036m in June 2019, an increase of $1,863m on the surplus in May 2019.

Credits (exports of goods and services) 

In seasonally adjusted terms, goods and services credits rose $576m (1%) to $42,378m. Non-rural goods rose $758m (3%). Rural goods fell $170m (4%) and non-monetary gold fell $37m (2%). Net exports of goods under merchanting remained steady at $18m. Services credits rose $26m.

Debits (imports of goods and services)

In seasonally adjusted terms, goods and services debits fell $1,287m (4%) to $34,342m. Capital goods fell $600m (9%), consumption goods fell $450m (5%) and intermediate and other merchandise goods fell $366m (3%). Non-monetary gold rose $132m (28%). Services debits fell $2m.