Australia's trade balance posted the......>

AUSTRALIA: Australia's trade balance posted the biggest deficit in 13 months in

November as exports remained flat and imports rose, while October's balance was

revised down into a deficit. The trade deficits in the first two months of the

fourth quarter raise further worries about the contribution of net exports to Q4

GDP.

- The November deficit was due mainly to a 1% rise in imports, as consumption

imports rose 3% m/m, or A$213 million, and capital goods imports rose 3%, or

A$190 million. Exports were flat m/m as rise in non-rural goods exports of 2%,

or A$394 million, was offset by a fall of 23%, or A$425 million, in non-monetary

gold exports.

- In original terms, exports fell for three main commodities and rose for the

other three. The main drag came from iron ore lump and fines exports for the

second straight month but this was mainly offset by a 11% m/m rise in liquefied

natural gas exports. LNG exports rose for the second straight month with both

quantities and unit values up in November for the first time since June.