Australia’s trade deficit remains wider than expected in June

Australia’s trade balance worsened during the month of June, with the deficit remaining wider than what the markets had expected.

The Australian trade deficit stood at AUD3.2 billion in June, compared to AUD2.2 billion in May, data released by the state-run Australian Bureau of Statistics showed Tuesday. A median estimate of economists had projected a fall to AUD2 billion.

Moreover, the value of exports declined 1 percent in June following a 1 percent gain during the previous month. Imports rose 2 percent following a similar increase in the previous month. Specifically, on the export side of the ledger which showed a USD213 million fall in receipts, the data revealed the key drivers were non-monetary gold which fell 15 percent or USD270 million, while rural goods rose USD35 million, and non-rural goods rose USD20 million.

Iron ore did its part, rising USD95 million for the month, along with non-gold metals which rose USD63 million. But this was offset by a 5 percent fall in coal, coke, and briquettes which saw the value of these exports drop USD142 million.

In terms of imports, which rose USD564 million in June, the ABS said the key drivers were a big lift in consumption goods which rose USD588 million, 7 percent in seasonally adjusted terms. Capital goods were also up a healthy USD147 million for a 3 percent increase.

Meanwhile, the Reserve Bank of Australia has lowered its official cash rate to a new record low of 1.50 percent, in its monetary policy meeting concluded Tuesday.