Trade Figures

Justification for the RBA keeping an eye on the terms of trade came through yesterday with a massive $2.1bln swing from March's deficit to a small surplus of $134m in April. It's the first trade surplus in over a year.

Exports rose by 10.7 per cent in April, marking the biggest monthly gain in 2 years and outpaced a 0.1 per cent gain in imports. The rise was driven by an 18% rise in non-rural goods. All of this was due to strong resource exports. Other non-rural goods, such as manufacturing and transport equipment both fell. There was broad-based strength across all the resource sectors, although the bulk commodity exports led the way. Metal ores and minerals exports rose 25%, with the value of iron ore and concentrates rising by 32% in the month (in original terms), with prices up 29% and volumes up 2%. Exports of coal, coke and briquettes rose 40%, although unlike iron ore this was mainly driven by stronger volumes, up 26% (in original terms) with prices up a more ‘modest’ 7%.