Trade Deficit Shrinks 29% as Commodity Gains Increase Export Profits

2024-04-26 06:22:31 Business

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Australia?s trade deficit decreased 29% in spring as commodity prices took a positive upturn. Official numbers from the Australian Bureau of Statistics demonstrated the balance of import and export revenues fell to $2.16 billion for the month, from $3.41bn in February.

Beijing, China, July 02, 2016 -- Exports increased 4%, while imports climbed only 0.7 points.

The positive increase was supported by a sharp bounce back commodity valuations according to analysts.

"Not surprisingly, metal minerals climbed. However, the 0.7pc increase was somewhat short of what we anticipated given the [21 per cent] rise in the Chinese spot price for iron," Shizuoka Capital Wealth Management Global Co-Head of the Investment Management Division, Michael Lane said.

"The shock this month was the almost 60% increase in gold trading internationally,? added Lane.

The April bounce in commodity costs ought to guarantee a further narrowing of the deficit before it widens again later in the year. The cost of both coal and iron mineral rose in April which looks good for the month to month read on the exchange balance" CBA financial specialist Gareth Aird said.

"However, we see pressure on the present spot cost of iron metal ($US60) and expect the cost of iron to fall in the later part of 2016.? In general terms, the balance of products and services was a shortfall of $2.8bn, down 8% on the previous month.

The data coincided with a better than-anticipated reading on retail numbers, with the figures aiding the Aussie dollar in its return to USD0.75.

Contact:
Naoko Yoshi
Shizuoka Capital Wealth Management
Tokyo, Japan
+81-387522047
fbact@shizuokafinancial.com
http://www.shizuokafinancial.com