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Investing.com-- Australia logged a bigger-than-expected trade balance in June as the country’s top exports rebounded from a sharp drop in the prior month, while imports shrank.
Trade balance rose to a surplus of A$5.37 billion ($3.49 billion), well above market expectations of A$3.18 billion, data from the Australian Bureau of Statistics showed on Thursday. The surplus also improved substantially from a A$1.60 billion surplus seen in May, which was the country’s weakest surplus in over five years.
June’s surplus was driven chiefly by a rebound in exports, which rose 6% from May as shipments of metal ores and minerals, fuels, coal, and gold all picked up. Non-monetary gold exports were a big driver of overall export growth.
Stronger exports came amid some improving economic conditions in Australia’s top export destinations, especially China, which wound down a bitter trade war with the U.S. in recent months.
Gold demand was also buoyed by persistent uncertainty over the global economy, especially as U.S. President Donald Trump outlined plans for more trade tariffs.
Australia’s imports fell 3.1% in June from the prior month, with a sharp drop in capital goods contributing to the decline. Australian businesses imported fewer fixed asset goods in part due to sluggish local conditions and seasonal factors.