Australia's Trade Deficit Unexpectedly Shrinks in June on Export Strength

Australia’s June trade deficit unexpectedly shrank in June for the first month since March after exports grew 1.5%. To much surprise, the previous period’s figure was revised sharply downward, to A$737.0 million. Nonetheless, June’s deficit of $441.0 million may actually provide signs of hope to a country suffering from continued labor market weakness and economic contraction. Just yesterday the Reserve Bank of Australia shifted its policy stance to “neutral” after citing improved domestic conditions and strong demand from China.