23 Dec 2015
AUD: Trade deficit is the next big thing in waiting – Goldman Sachs
FXStreet (Delhi) – Research Team at Goldman Sachs, notes that the Australia’s trade deficit printed a pronounced deterioration in October, to its widest level since February 2008 (ex April 2015).
Key Quotes
“The deterioration reflected a sharp decline in export earnings, with little change on the import side. Moreover the decline in exports was broad-based across rural and non-rural goods, with little change in services.”
“Looking ahead, we note that commodity prices have continued their downward trend, and exports are unlikely to add to growth in 4Q2015 to the degree they did in 3Q2015. On the imports side, preliminary data suggest a modest fall in goods imports in November, led by intermediate goods (fuel) and the more lumpy and volatile non-monetary gold component.”
International Trade, November:
L: -A$3.3bn; C: -A$3.0bn; F: -A$2.9bn.
Key Quotes
“The deterioration reflected a sharp decline in export earnings, with little change on the import side. Moreover the decline in exports was broad-based across rural and non-rural goods, with little change in services.”
“Looking ahead, we note that commodity prices have continued their downward trend, and exports are unlikely to add to growth in 4Q2015 to the degree they did in 3Q2015. On the imports side, preliminary data suggest a modest fall in goods imports in November, led by intermediate goods (fuel) and the more lumpy and volatile non-monetary gold component.”
International Trade, November:
L: -A$3.3bn; C: -A$3.0bn; F: -A$2.9bn.