5 Sep 2013
Flash: AUD trade should inflict some passing damage on AUD - Westpac
FXstreet.com (Barcelona) - Australia’s busy data week continues at 1.30GMT with the July trade balance, notes Sean Callow, FX Strategist at Westpac, who thinks the run of 5 consecutive surpluses is likely to be broken.
Key Quote
"The ABS has already reported a 4.6% m/m jump in goods imports, led by fuel. We look for +3.7% for total imports, more than offsetting a 0.5% rise in exports, with coal and iron ore export volumes rising. This should see the June surplus of A$0.6bn (probably set for a downward revision) turn to a deficit of –A$0.4bn. This shouldn’t be a trend change in the trade position but with the median forecast +0.1bn, should inflict some passing damage on AUD."
Key Quote
"The ABS has already reported a 4.6% m/m jump in goods imports, led by fuel. We look for +3.7% for total imports, more than offsetting a 0.5% rise in exports, with coal and iron ore export volumes rising. This should see the June surplus of A$0.6bn (probably set for a downward revision) turn to a deficit of –A$0.4bn. This shouldn’t be a trend change in the trade position but with the median forecast +0.1bn, should inflict some passing damage on AUD."