Australian May trade balance: Surplus of AUD 5.773bn (vs. 6.678bn expected)

Australia – trade balance for May 2024

The rise in exports is the best in 9 months, but this was overshadowed by the rise in imports. A huge turnaround in imports from the -7% drop in April. An economy that is sucking in imports is generally perceived as one in good shape. Yesterday we had a solid retail sales report for May. On the flip side, its just one month so too early to draw too many conclusions.

The RBA is not considering a rate cut at present, and there are signs they might very well hike again – inflation is still sticky above target. Yesterday’s and today’s data won’t prompt a rate rise, but it won;t stand in the way either.

This article was written by Eamonn Sheridan at www.forexlive.com.