Trade Desk Thoughts - Australian Trade Balance (July)

Australian Trade Balance (July) Actual -0.7, Expected 0.1 Previous 0.4

Release Explanation: The trade balance figure is simply the difference between the amount of export and imports of Australian goods and services for the reported month with Australia and other foreign trade partners. Subsequently, when exports are greater than imports, or positive net exports, a trade surplus is created. However, when imports are greater than exports, a deficit is created. Simply put, here, there is more money leaving the country than actually coming in. As a result, the report is taken into heavy consideration as it indicates flow of goods and services and stand as one of the biggest components of the Balance of Payments report.

Trade Desk Thoughts: In seasonally adjusted terms, the balance on goods and services in July 2008 was a deficit of $717m, a turnaround of $1,068m on the revised surplus in June 2008. This was a sharp contrast of analysts expectations. Imports for the country were up 4 percent in July when compared to the previous month while exports eased 1 percent.

Forex Technical Reaction: The Australian dollar is currently testing the neutral pivot point at .8335 after the release

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