Westpac's first take on the Australian trade balance data out earlier today

Data is here

WPAC comments:

Exports increased by 2.8%, a rise of about $720mn, exceeding our expectations for an increase of 0.5%.

  • Gold led the way, jumping 62%
  • This jump in gold, while likely to be partially reversed in August, is part of a strong uptrend
  • The gold sector is responding to higher prices in AUD terms
  • Gold volumes in the June quarter a 23% increase on the average level in 2015 and a 34% lift on the levels prevailing in 2014.
  • Metal ores was the other major mover in July, with export earnings down 4.7%, a fall of $280mn, a surprising result given that spot prices advanced in the month

Imports declined in July, but the fall of 0.4% was less than anticipated

  • Consumer goods did fall
  • However, much of the weakness in consumer goods was offset by broad based strength across the other categories, particularly intermediated goods