Australia: Trade surplus narrows more than market expected in April - TDS

April Trade surplus narrows more than market expected to A$0.5b (Mkt: A$2b, Prior: A$3.1b), caused by a –A$2.8b outsized fall in exports vs a modest A$171m fall in imports notes the analysis team at TDS.

Key Quotes

“The main fall in exports came from the value of coal exports dropping –45% due to the supply disruptions as a result of Cyclone Debbie. Exports of iron ore was largely unchanged with weaker prices offset by increased volumes.  On an annual basis, Australia's trade balance with China remains on a positive trend growing at +7%. Overall, the narrowing surplus for April is due to a one-off weather disruption and is likely to rebound on the next print.”