Australia's Trade Balance with surplus of AUD 4.871bn

Australia has come out with April's international trade balance as follows:

• A surplus of AUD 4.871B vs. the expected surplus of AUD 5B.
• The prior was revised to +AUD 4.898bB from + AUD 4.949B.

This follows yesterday’s GDP report that 'showed only a modest rise in exports in constant price terms but of course monthly trade releases use current dollars and these have been showing Australia printing record surpluses in recent months', analysts at Westpac explained.

About the Trade Balance

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.