AUD dropping a little lower following the big miss on trade

The November trade balance was out earlier, and it was a huge miss:

• Australian Trade balance (November): AUD -628m (vs. expected AUD +550m)

Yep, the November result was well below market expectations

• which were for a bigger surplus, not a deficit!

Some more detail:

Export earnings were higher

• But were more than offset by imports
• Export earning should improve with the bounce back in iron ore (I posted on this earlier)
• Service exports up 2%

Imports

• The falling AUD has impacted
• Consumption goods +3%
• Capital goods+3%

And, so to the Australian dollar, weakness is extending