Australia’s April trade data has beaten market expectations with a seasonally adjusted deficit of $1.579 billion against market expectations of a -$2 billion print. That is a fall of $392 million, 20%, from the March deficit of -$1.971 billion.
The improvement was driven by a combination on both sides of Australia’s trade balance. Total goods and services credit – what we sell to the world – rose $171 million with rural goods, +$157 million, non-monetary gold, +$141 million, and services, +$98 million, the key increase while non-rural goods dipped $224 million.
Interestingly the breakdown of non-rural goods showed that metals ores and minerals, coal, coke and briquettes, other mineral fuels and metals (excluding non-monetary gold) all fell during the month of April, while manufactures and machinery rose.
On the debit side of the ledger – what we buy from the world – there was a fall of $222 million with capital goods, down $299 million. That was the big ticket move.