Australian trade surplus narrows in November on strong import growth

Australian trade surplus narrowed in November, partially because of strong performance in import growth. The trade surplus deteriorated to AUD 1.92 billion. Meanwhile, surplus of October was downwardly revised to AUD 2.013 billion from AUD 2.316 billion. The changes in November reflect a sequential rise of 1.4 percent in export values and a 1.7 percent rise in imports.

Resource exports dropped 0.6 percent sequentially, owing to a 9 percent decline in coal exports, while metal ores and minerals rose 4 percent. Rural goods dropped 0.9 percent sequentially, led by an 8.4 percent decline in wool. Manufacturing goods dropped 3.2 percent sequentially as transport equipment fell 8.7 percent. Service exports were up 0.7 percent sequentially as the lower AUD continues to underpin travel exports that rose 0.8 percent. The main source of growth for exports was non-monetary gold, which rose 59.6 percent in the month, noted ANZ in a research report. Total export values rose 20.7 percent year-on-year.

Imports of consumption goods were up 2.3 percent sequentially as automobile imports were up 7.1 percent. Capital goods rose 6.5 percent as a 78.5 percent rise in the lumpy civil aircraft component countered a 10.9 percent fall in telecommunication equipment. Service imports dropped 0.3 percent as travel fell 1.6 percent. Total imports were up 14.9 percent year-on-year.

At 12:00 GMT the FxWirePro's Hourly Strength Index of Australian Dollar was highly bullish at 129.134, while the FxWirePro's Hourly Strength Index of US Dollar was highly bearish at -118.259. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex