Australia’s Trade Balance surprised sharply to the upside, with the surplus widening to A$3.5 billion in June versus expectations for a far smaller A$1.8 billion result. Exports rose 7 percent, driven by a 23 percent jump in metal ore sales and a 15 percent increase in coal shipments. Imports were essentially flat, tracking higher by a meager 0.2 percent.
The Australian Dollar jumped higher on the outcome, reflecting optimism that the mining boom that had insulated the larger antipodean country from the worst of the 2008 credit crunch and subsequent global recession will continue to keep economic growth supported despite a slowdown in China, Australia’s largest overseas market. Beijing has been pushing to slow the buoyant economy amid concerns about asset bubbles and runaway inflation.
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