MNI DATA IMPACT: Australia Trade Data At Near Record High

By Lachlan Colquhoun

     SYDNEY(MNI) - Australia's monthly trade balance came in at A$4.9 billion in

March, which would have been a new record high if it had not been for a revision

of the February data, revised from A$4.8 billion to A$5.1 billion. The result

was nevertheless strong and beat estimates, which were around A$4.8 billion.

     Here are other factors of interest in today's release by the Australian

Bureau of Statistics.

Export boom continues 

Iron Ore loses some shine. Recent results have been dominated by iron ore

exports, which have surged due to the Brazilian mine disaster and robust demand

from China. The category lost ground in March, with a 12.2% decline in metal

ores and minerals (the majority of which is iron ore) while exports of

non-monetary gold were down 31.0%.

Coal rebound 

Coal exports have been under pressure due to processing delays at Chinese ports.

After falling sharply in February, exports of coal, coke and briquettes spiked

15.8% in March.

Fuel prices up 

Imports were up 1.9%, driven by a 11.7% increase in fuel imports largely due to

higher prices. This could have an inflationary impact later in the year and

could play into the Reserve Bank of Australia's interest rate decision making.

Transport equipment volatility

Australia is not known as an exporter of transport equipment, but exports in

this category jumped by 24% to A$425 million in March. This comes after a slump

in of 26% in January, illustrating the volatility and lumpiness of this sector.

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

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