MNI 5 THINGS. Australia Trade Data Shows Surplus Surge

By Lachlan Colquhoun

     SYDNEY (MNI) - Australia's trade data for January was released Thursday,

showing the second largest surplus on record, coming in at A$4.5 billion.

     Here are five factors in today's release by the Australian Bureau of

Statistics.

Surplus surprises 

The market had been expecting the surplus to fall to around A$2.8 billion after

a A$3.8 billion result in December, but a five percent rise in exports, to

A$39.9 billion, drove the surprise result. The record surplus was the $4.7

billion posted in December 2016.

Gold glitters. 

The value of gold exports was the standout feature, almost tripling to reach

A$2.2 billion in January and comprising more than 50% of the export increase.

China problem. 

While the overall value of metal ores and coal exports went up, mineral exports

to China fell sharply. Iron ore exports to China fell 20% and coking coal was

down 12%.

Imports rise. 

The weaker Australian dollar did not impact on imports, which increased by A$1.1

billion. One positive sign was a 12% increase in the value of incoming capital

goods.

Cereal Slump. 

Cereal exports were the star performer in the December data, up 10%, but a 18%

slump in January shows that this market is volatile.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

[TOPICS: MALDS$,MAUDR$,MAUDS$,M$A$$$,M$L$$$,M$U$$$]