Trade Desk Thoughts - Australian Trade Balance

Australian Trade Balance Actual 1.36B, Expected 0.26B Previous -0.72B

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: Australia had a trade surplus of A$1.36 billion for the month of September. This is sharply higher than analyst's initial expectations of A$200 million and is the largest surplus seen since June 1997. Exports were up 6 percent, while imports were down 2 percent for the month of September.

Forex Technical Reaction: The Australian dollar has not reacted to this release. Most likely this is due to the fact that markets are awaiting the decision on the bailout plan which is currently being voted on.

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