The Australian trade deficit for June is set to top $1 billion, as importers take advantage of the strong Australian Dollar to purchase cheaper imports. "Australia's long run of trade deficits is set to continue,'' CommSec chief economist Craig James said.''Given the disruptions to coal exports from Newcastle, overall exports are expected to have fallen by 3.5 per cent in June.'' Due to this, James' expectation is that this month will hit a deficit of $1.7 billion. Australia's monthly trade figures have been in deficit for over five years, despite the economy experiencing a once in a lifetime commodity boom. ''With more upside to the Australian dollar in coming months, we expect growth in the value of imports to remain relatively subdued,'' ANZ Bank international economist Dr Alex Joiner said. ''Volumes, on the other hand, should continue to pick up as Australian consumers and businesses take advantage of their increasing purchasing power.'' The downside is that the current account deficit would constantly generate precarious figures due to the insatiable demand of imports by Australian consumers.
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