The ABS preliminary estimates of the Australia’s September quarter trade deficit and terms of trade were published indicating an improvement in Australia’s export earnings and prices received. The trade deficit narrowed to $7.4bn, down from the revised June quarter figure of $10.9bn, as the value of gold and minerals exported rose. The figures are “advance” estimates and will be updated in the balance of payments report released in early December.
Westpac said they will be upgrading Q3 GDP forecasts on the back of a lower level of imports and thus a higher net export figure. The bank’s Q3 GDP estimate had been raised from 0.7% to 0.9% which had fed through to a higher full year estimate of 2.3%.