In a new system as part of its response to COVID-19, for a second preliminary reading for key Aussie data, yesterday's was Retail Trade, the preliminary estimate for the March Trade Balance has been released.
March Trade Balance (Preliminary)
- Australian bureau of statistics says preliminary data shows march exports rose 29% to a$36.1 bln in original terms - Reuters news
- ABS says March imports rose 10% to AU$23.8 bln.
Australia’s merchandise (goods) exports rose $8 billion or 29 per cent in March 2020, according to the latest Australian Bureau of Statistics (ABS) preliminary international trade figures.
The preliminary figures reflect a significant rise in exports from the resources sector. Among the key movers were exports of iron ore to China, Australia’s largest trading partner, which increased significantly following declines in January and February.
There were also large increases in the value of exports of coal, gas and petroleum, and strong exports of non-monetary gold, particularly to Hong Kong and the United Kingdom.
"Exports and imports will both be dented further by physical distancing restrictions and trade disruptions; however, exports will be cushioned by a rebound in iron ore shipments, post Cyclone Damien," analysts at Westpac explained.
"Note that this only covers goods, not services (i.e. no update on tourism and education) and is not seasonally adjusted."
Description of 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.
Review Alex Nekritin's Article - Trading the Aussie with Australia Trade Balance
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