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The Q3 account deficit came in very close to expectations at $10.7 billion versus the expected $10.2 billion.
The decrease can be attributed to increased goods and services exports, according the Australian Bureau of Statistics (ABS).
The September figures show, the balance on goods and services surplus in Q3 was $6,607 million, rising $2,704 million.
Exports of goods and services rose 3% to $3.390 million after a continued rise in mineral fuels and natural gas.
Rising imports of goods and services was up 1% to $688 million, according to ABS figures.
Strong exports in international trade are expected to contribute 0.4% to growth in the Q3 Gross Domestic Product.
Australia's net international investment position was a liability of $940.2 billion, a decrease of $17.3 billion on the revised 30 June 2018 position of $957.5 billion, according to ABS figures.
Gross Domestic Product (GDP) figures will be released tomorrow with Analysts predicting the GDP to be healthy with expectations of +3/3% year on year.
Australian dollar price
The AUD/USD was steady upon the data release, coming in around 0.7360, with support at recent daily highs between 0.7335/45.
Australian government spending added to Q3 growth
Australian government spending on operational items rose 0.5% in Q3 from the previous quarter to an inflation-adjusted A$87.06 billion, according to the Australian Bureau of Statistics.
Government asset investment and public enterprises climbed 3.4% to A$22.67 billion, contributing to economic growth in the last quarter.
These numbers will impact the GDP report due on Wednesday, which analysts expect to be positive.