Australian Trade Balance Unexpectedly Falls Into Deficit in April

Australia’s [B]Trade Balance[/B] fell into deficit for the first time since July 2008 in April, showing a –A$0.09 billion deficit after posting a revised A$2.3 billion surplus in the previous month. Economists had forecast a A$1.7 billion result ahead of the release. Exports fell -11.3%, the most in at least 6 months, while imports shed -1.7%. Shipments to China fell for the first time since November 2008, losing -14.8%. RBA Governor Glenn Stevens has repeatedly expressed optimism about Chinese economic growth, noting that exports to the south-Asian giant will help Australia weather the current global downturn. Revenues from overseas sales of coal and iron ore, the country’s top export commodities, fell -17.7% and -21.1% respectively.