Australia's trade deficit to shrink on stronger export values

Australia's trade balance data for June is due to on 4th August.
According to the initial official estimate, Australia's imports rebounded after their May decline: with the reported increase in imports of goods of 4.4% mom.

Societe Generale estimates "A fall in Australia's imports of service by 0.5% mom, but total imports is expected to have grown by 3.3%. Total exports of the country, in contrast, is likely to post a solid growth rate of 2.5% mom due to surge in iron ore prices (Port of Qingdao) of 17% mom in May, and a further 3% in June."

Due to higher grow in exports than imports, the bank estimates the trade deficit to be widen by AUD 3bn only, and remain above the Q1 average of AUD1.5bn.