Australian trade balance for July narrower-than-expected

Following the widening of Australia's June trade balance, today's trade figures for July came in at -2.4bn vs -2.75bn exp and 3.195bn last. Exports +3% m/m vs -1% last, while imports were 0% m/m vs 2% last.

JULY KEY POINTS

BALANCE ON GOODS AND SERVICES: In trend terms, the balance on goods and services was a deficit of $2,485m in July 2016, an increase of $62m (3%) on the deficit in June 2016. In seasonally adjusted terms, the balance on goods and services was a deficit of $2,410m in July 2016, a decrease of $840m (26%) on the deficit in June 2016.

CREDITS (EXPORTS OF GOODS AND SERVICES): In seasonally adjusted terms, goods and services credits rose $719m (3%) to $26,425m. Non-monetary gold rose $912m (62%), rural goods rose $42m (1%) and net exports of goods under merchanting rose $6m (21%). Non-rural goods fell $249m (2%). Services credits rose $8m.

DEBITS (IMPORTS OF GOODS AND SERVICES): In seasonally adjusted terms, goods and services debits fell $122m to $28,835m. Consumption goods fell $511m (6%). Intermediate and other merchandise goods rose $231m (3%), capital goods rose $78m (2%) and non-monetary gold rose $30m (6%). Services debits rose $50m (1%).