Andrew Hanlan, analyst at Westpac, notes that Australia's trade surplus jumped to $8.0bn in June, a fresh record high and the outcome is well up from the earlier record high of $6.2bn in May (revised up from $5.7bn).

Key Quotes

“Exports advanced while imports pulled-back sharply.”

“Exports increased by 1.4%, a little stronger than our forecast, a +0.8%. As anticipated, the key positive was iron ore, which rose further on the spike in global prices following the supply shock in Brazil.”

“Imports provided the main surprise, pulling-back by 3.6%, down $1.3bn. This suggests a drop in volumes in the month against the backdrop of sluggish domestic demand.”

“For the June quarter, the trade surplus surged to $19.7bn, a $5.2bn improvement on the March quarter.”