Saturday, 03 Apr 2010
Bloomberg reported that Australia's trade deficit widened more than economists expected in February 2010 as coal exports declined and imports of machinery rose.
The Bureau of Statistics said that the shortfall swelled to AUD 1.9 billion from a revised AUD 1.1 billion in January 2010. The median estimate in a Bloomberg News survey of 19 economists was for an AUD 1.34 billion gap.
The weaker trade balance may give central bank Governor Mr Glenn Stevens scope to keep borrowing costs unchanged next week, after becoming the only policy maker among the Group of 20 to boost the benchmark interest rate four times since October.
Traders said chances of a quarter point increase in the policy rate to 4.25% on April 6th 2010 are 56%, according to interest rate futures.
Mr Bill Evans chief economist at Westpac Banking Corporation in Sydney said that "Rural exports are expected to jump in February with higher prices and stronger meat, wheat and wool volumes. However, port data implies weaker iron ore and coal export volumes, only partially offset by higher prices."
Exports fell 1% to AUD 19.9 billion in February. Shipments of coal declined 12%. Imports rose 2% to AUD 21.8 billion. Machinery and industrial equipment imports rose 23%.
Mr Andre Bush CEO of Western Australia's Port Authority said that iron ore shipments from Western Australia's Port Hedland will double in 3 years as BHP Billiton Limited expands its overseas sales of the steelmaking ingredient.
Source: http://www.steelguru.com/news/index/MTM5NjA2/Australian_trade_deficit_widens_as_coal_exports_fall.html
Bloomberg reported that Australia's trade deficit widened more than economists expected in February 2010 as coal exports declined and imports of machinery rose.
The Bureau of Statistics said that the shortfall swelled to AUD 1.9 billion from a revised AUD 1.1 billion in January 2010. The median estimate in a Bloomberg News survey of 19 economists was for an AUD 1.34 billion gap.
The weaker trade balance may give central bank Governor Mr Glenn Stevens scope to keep borrowing costs unchanged next week, after becoming the only policy maker among the Group of 20 to boost the benchmark interest rate four times since October.
Traders said chances of a quarter point increase in the policy rate to 4.25% on April 6th 2010 are 56%, according to interest rate futures.
Mr Bill Evans chief economist at Westpac Banking Corporation in Sydney said that "Rural exports are expected to jump in February with higher prices and stronger meat, wheat and wool volumes. However, port data implies weaker iron ore and coal export volumes, only partially offset by higher prices."
Exports fell 1% to AUD 19.9 billion in February. Shipments of coal declined 12%. Imports rose 2% to AUD 21.8 billion. Machinery and industrial equipment imports rose 23%.
Mr Andre Bush CEO of Western Australia's Port Authority said that iron ore shipments from Western Australia's Port Hedland will double in 3 years as BHP Billiton Limited expands its overseas sales of the steelmaking ingredient.
Source: http://www.steelguru.com/news/index/MTM5NjA2/Australian_trade_deficit_widens_as_coal_exports_fall.html
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