Australian trade deficit increases
The Australian trade deficit for July came in at AUD-1.56 billion, as imports of oil and consumer goods increased while exports fell. The Australian economy has suffered a downturn in demand for its commodities in the midst of the recession, while imports have continued to rise. This is partly due to a government initiative which saw AUD12 billion distributed to households to spend on consumer goods, with the aim of stimulating the economy.
The Australian economy has avoided slipping into recession and surprised markets by posting growth of 0.6% in the second quarter. Sustained demand from China, India and Latin America has helped support the Australian export sector. The Australian base interest rates is currently at a 49-year low of 3% but is expected to rise in November following positive growth figures.
Currency rates for the Australian dollar are currently at USD0.8387 and GBP0.5129.
The rates quoted above are interbank rates. Client rates may vary according to the volume and timing of the trade.