Taiwan Central Bank Likely to Keep Interest Rates Unchanged Through 2027 
Japan Trade Deficit Narrows as Exports Surge in May 
Oil Prices Recover Slightly as U.S. Crude Inventories Fall, But Iran Deal Caps Gains 
Gold Prices Surge Above $4,300 as US-Iran Peace Deal Weakens Dollar and Oil 
Asian Currencies Steady as BOJ Raises Rates and Markets Await Fed Decision 
Oil Prices Ease as Markets Weigh U.S.-Iran Peace Deal and Strait of Hormuz Reopening 
RBA Expected to Hold Interest Rates at 4.35% as Markets Watch AUD/USD and ASX 200 
Asian Stocks Advance as Nikkei Nears Record High Ahead of Fed Decision 
Asian Markets Mixed Ahead of Key Central Bank Decisions 
Myanmar Economic Outlook Hit by Fuel Price Shock as World Bank Cuts Growth Forecast 
Australia’s current account deficit narrowed during the third quarter of this year, driven by an improvement in the trade balance offsetting a deterioration in the income balance. Net exports made a slightly larger-than-expected contribution, due to a fall in import volumes.
The country’s CAD narrowed to AUD10.7 billion from a revised estimate of AUD12.1 billion in Q2 (originally AUD13.5 billion). This equates to 2.2 percent of GDP, from 2.6 percent in Q2.
An improved trade balance drove the decrease, coming in at a surplus of AUD6.6 billion compared to AUD3.9 billion in Q2. This offset a deterioration in the income balance to a deficit of AUD16.9 billion (from a deficit of AUD15.8 billion in Q2). That equates to 3.6 percent of GDP, the highest since Q2 2011.
Net exports will make a solid contribution to Q3 GDP. The 0.4ppt they are adding is the highest since Q1 2016 and slightly above consensus. Exports volumes rose by 0.1 percent q/q led by a 4.5 percent increase in services. Resource exports were a drag, falling 1.5 percent, while rural goods increased 0.5 percent and manufacturing goods increased 2.1 percent.
Import volumes fell 1.5 percent q/q with a 2.5 percent drop in consumption goods and 2.2 percent fall in capital goods driving the decline. Within these categories, automobiles fell 3.9 percent and machinery and equipment declined 4.2 percent. Intermediate and other goods rose 0.2 percent, while service imports were virtually unchanged. The terms of trade rose by 0.8 percent q/q, and 2.7 percent y/y.
