Free Trial
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
AUSTRALIA DATA
Australia’s balance of payments data for Q3 was a lot weaker than expected with a current account deficit being recorded for the first time since Q1 2019. Net exports should detract 0.2pp from Wednesday’s Q3 GDP figure, which was better than the -0.5pp expected.
- Q3 posted a A$2.3bn current account deficit compared with Q2’s A$14.7bn surplus and consensus at +A$6.0bn. This shift to deficit was driven by a narrowing in the trade surplus and a record high income deficit of A$33.2bn.
- The trade balance remained in surplus in Q3 at A$31.2bn, which is still historically high, but fell A$11.1bn q/q. The goods surplus fell A$8.8bn to A$38.9bn and the services deficit widened by more than A$2bn. Imports of goods & services rose 8.2% q/q driven by overseas travel post-Covid restrictions, vehicles and fuel, whereas exports fell 0.2% due to east coast mining exports being disrupted by flooding.
- The terms of trade fell 6.6% q/q in Q3 driven by lower coal and metal ore export prices and an increase in import prices due to mineral fuels.
- Q3 government finance numbers were also released and government spending should detract -0.2 pp from growth after -0.2 pp last quarter. Given government consumption accounts for over 20% of domestic demand, this result could pose a downside risk to the consensus forecast of 0.6% q/q for Q3 GDP.
Australia current account A$bn
Source: MNI - Market News/ABS
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok