Australia Records A$1.92 Billion Trade Surplus for July

The Australian Bureau of Statistics reported a trade surplus of A$1.92 billion for July, surpassing market forecasts of A$1.50 billion. While the figure beat expectations, the surplus narrowed from the A$2.34 billion recorded in June.

Exports fell 3.3% to A$46.26 billion, a decline driven largely by a 26.1% drop in non-monetary gold and a 4.3% decrease in coal, coke, and briquettes. These losses were partially offset by growth in rural exports and LNG export volumes. During the same period, imports decreased by 2.5% to A$44.34 billion, with the decline led by fuel and lubricant imports.

This trade performance follows a 0.4% expansion in second-quarter GDP. The combination of economic growth and the trade surplus has increased market expectations that the Reserve Bank of Australia may implement an interest rate hike in September. The central bank has already raised the cash rate three times this year to 4.35%.