Release Explanation: The trade balance figure is simply the difference between the amount of export and imports of Australian goods and services for the reported month with Australia and other foreign trade partners. Subsequently, when exports are greater than imports, or positive net exports, a trade surplus is created. However, when imports are greater than exports, a deficit is created. Simply put, here, there is more money leaving the country than actually coming in. As a result, the report is taken into heavy consideration as it indicates flow of goods and services and stand as one of the biggest components of the Balance of Payments report.
Trade Desk Thoughts: Australia has posted a higher than expected trade balance for the month of October. In seasonally adjusted terms, the surplus was 2.952 billion; this is an increase of 1.698 billion from September's revised figure. This was mainly due to the strong rise seen in goods and services exports, primarily in the non-rural and other goods components. The largest rise seen in the consumption goods component was textiles, clothing, and footwear which increased 12 percent. In all the provinces, Western Australia was once again the highest exporter with its significant mining and natural resources. For imports though, New South Wales, Victoria, and Queensland were ahead of Western Australia.
Trade Desk Thoughts: Australia has posted a higher than expected trade balance for the month of October. In seasonally adjusted terms, the surplus was 2.952 billion; this is an increase of 1.698 billion from September's revised figure. This was mainly due to the strong rise seen in goods and services exports, primarily in the non-rural and other goods components. The largest rise seen in the consumption goods component was textiles, clothing, and footwear which increased 12 percent. In all the provinces, Western Australia was once again the highest exporter with its significant mining and natural resources. For imports though, New South Wales, Victoria, and Queensland were ahead of Western Australia.
Forex Technical Reaction: The Australian dollar has been rejected from the LFB R1 level in earlier trade and is looking to find a base just above the neutral pivot point at .6455.