Australia’s trade surplus surged in September to $3.017 billion in seasonally adjusted terms, the largest recorded surplus since February last year.
The result exceeded expectations for smaller surplus of $1.8 billion. Australian exports jumped 3.7%, helping to produce the much larger trade surplus.
The AUD/USD gained 0.50% in response, currently trading at 0.7122.
According to the Australian Bureau of Statistics, exports rose by 1% to $37.496 billion, and Analysts say it’s the highest level recorded, and the export number suggests the China impact might slowdown.
Non-rural goods exports rose by $678 million from August, while exports of Metal ores and minerals, largely iron ore, surged by $551 million from a month earlier.
According to the ABS the Export Price Index rose 3.7% in the September quarter 2018 following a rise in the June quarter 2018 of 1.9%.
- The main contributors to the rise are higher prices for Gas, natural and manufactured Metal and metal scrap, and Petroleum, petroleum products and related materials
- Export Price Index rose 14.0%. The main contributors to the rise are Gas, natural and manufactured
Imports fell by 1% to $34.479 billion, due to a significant decline in the value of capital goods which fell by $607 million.
Non-monetary gold imports also fell by $59 million, according to the ABS data.
According to the ABS, the Import Price Index rose 1.9% in the September quarter 2018 following a rise in the June quarter 2018 of 3.2%.
- The main contributors to the rise were higher prices for Petroleum, petroleum products and related materials
- Import Price Index rose 9.8%. The main contributor to the rise is Petroleum, petroleum products and related materials.
Economists say despite the large size of Australia’s surplus in September, the result will do little to increase Australian Q3 Gross Domestic Product.